ISAs more popular than ever

Posted 2008-04-13

HM Revenue and Customs (HMRC) has revealed that record amounts of cash were placed in Individual Savings Accounts (ISAs) during the 2007/08 financial year.

The figures show that there were more investors putting money in Mini Stocks and Shares ISAs than ever before, with 1.4 million accounts presently receiving deposits over the past 12 months.

That marks a year-on-year increase of 7.6 per cent on the previous tax year, with volumes of cash also increasing by 15 per cent.

Monies deposited in either Maxi or Mini Cash ISAs, meanwhile, saw an increase of 5.3 per cent to nearly £18.1 billion. The government has now scrapped the Mini/Maxi distinction after heeding warnings that it was confusing.

"In the first three quarters of the 2007/08 tax year, roughly 11 million people invested £25.7 billion in ISAs despite considerable uncertainty in financial markets and some rather mixed commentary in media," noted Tax Incentivised Savings Association (TISA) director general, Tony Vine-Lott.

"These numbers are the most powerful evidence possible to demonstrate consumers affinity for ISAs and their viability into the future - which the government has made clear is without question."

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