More investors turn to ISAs

Thursday, November 3, 2005

New research into Individual Saving Account (ISA) take-up has revealed that more people are taking advantage of the tax-free-interest savings opportunity.

The research for financial services provider Intelligent Finance, found that half a million more people have taken out an ISA in the first quarter of the financial year compared with the same period a year ago.

There was a rise of 7.45 per cent in the number of people depositing money into an ISA over the period, 7.6 million up from 7.1 million the previous year.

"These figures suggest we could be on for a record year," said Nick Robinson, managing director of Intelligent Finance.

"We know that people across a range of ages and life stages opt for ISAs as they are a great way to save, you don't get taxed on your savings interest, they pay very competitive rates and many allow instant access to cash."

"We are constantly advising people to save more and if we want to encourage more of this then it's important that they, not the taxman, should see the benefits of their savings."

Last month it was announced that savers were missing out on a total of £3.8 billion of interest by not investing in ISAs.