Seven–fold increase in ISA savings since 2000

The value of ISA savings in the UK stood at £207.8 billion at the end of the tax year 2007/08, a seven-fold increase on 1999/00 (£28.6 billion), according to a report by the Halifax.

The number of ISA accounts invested in during the financial year 2007/08 was 14.7 million, 59% higher than in the first year of ISAs' existence in 1999/00 (9.3 million).

More than one-third (35%) of UK households have an ISA, a slight increase since 2002/03 (32%), according to the earliest available data.

Cash accounted for 61% of the value of all ISA savings in 2007 compared to 44% in 2000.

The annual amount invested in ISAs has risen by 26% from £28.4bn in 1999/00 to £35.7bn in 2007/08. The average amount invested per account, however, has fallen by 21% from £3,064 to £2,426 over the period.

Between 1999/00 and 2005/061 the number of women ISA savers increased by 46%, faster than the increase in the number of male ISA savers (34%). The number of male ISA savers (6.3 million), however, remains higher than the number of female savers (6.1 million).

All age groups recorded an increase in the number of ISA savers between 1999/00 and 2005/06. The number of ISA savers increased fastest among the under 25s (97%) followed by 35-44 year age group (49%).

Scotland and the East Midlands recorded the fastest rate of growth in the number of ISA savers (49%) between 1999/00 and 2005/061. West Midlands recorded the smallest increase (30%) over the period.

Regionally, the South East has the highest proportion of households with an ISA (44%). Northern Ireland has the lowest proportion (14%) and was the only part of the UK to record a fall between 2002/03 and 2007/08.


Martin Ellis, chief economist at Halifax, commented: "ISAs have proved to be a highly popular savings vehicle since their introduction almost a decade ago. The number of ISA savers has increased significantly during this period.

"The Individual Savings Account is the principal tax free savings vehicle for most people and an essential element of their financial planning."