Isa investment to hit £40bn mark this year

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Isa investment to hit £40bn mark this year

Tue 16th Feb 2010

The total amount invested by savers into their Isa accounts is set to hit £40 billion by the end of the tax year, according to Yorkshire Bank and Clydesdale Bank.

It will mark the first time that the total has hit the sum during one tax year and will bring the total amount that has been saved in the tax-free accounts to £348.8 million since they were first issued 11 years ago.

The number of people who take advantage of the product has also increased during that time, with 9.3 million accounts opening in the first year compared to the 14.8 million who are estimated to have invested before April 5th.

Steve Reid, retail director for Clydesdale Bank, warned: "With an average investment of less than half the allowance and only one in four adults taking advantage of Isas' tax-free status, savers are losing millions in tax unnecessarily."

Those wishing to save may find that they have less to set aside at the end of the month after shelling out on Valentine's Day. Yorkshire Bank found that couples spend an average of £550 on their romantic celebrations.

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