Cash ISA savings are highest in Epsom & Ewell

The biggest ISA savers in the UK are in Epsom and Ewell with an average balance of £9,343, according to the Halifax ISA Savings Report. The Surrey LA is followed by Derbyshire Dales (£9,231), South Buckinghamshire (£9,021), Richmond upon Thames (£8,891) and Spelthorne (£8,858). The average balance in all of these areas is significantly above the UK average ISA balance of £6,953.

Apart from the Derbyshire Dales in East Midlands, there are only two other areas outside southern England among the 25 areas with the highest average ISA balances; Fylde in Lancashire (£8,655) and Hambleton in North Yorkshire (£8,565).

Many of the areas with the highest ISA saving are in the South East with nine LAs in the region among the national top 25. These include Runnymede (£8,768), Elmbridge (£8,596) and Chiltern (£8,587). A further six LAs are in the East of England including Brentwood (£8,682) and St. Albans (£8,549).

There are some marked regional differences - savers in East of England have the highest average ISA balance (£7,606) and the smallest average balance is in Scotland (£5,572). Eight regions have average balance above that of the UK average (£6,953); East Midlands (£7,439), London (£7,361), South East (£7,296), Yorkshire and the Humber (£7,251), North West (£7,133), Wales (£7,024) and West Midlands (£6,996).

ISA savers in the Dorset LA of Christchurch have the highest savings balances relative to local earnings in the UK. The average ISA balance of £8,565 is equivalent to 45% of local average annual gross earnings.

ISA savers in North Norfolk have the second highest average savings balances in relation to local earnings (43%), followed closely by Waveney (42%) in the East of England, Boston in the East Midlands and Wyre in the North West (both 41%).

The 25 local authorities with the highest average ISA balances as a percentage of local earnings are dispersed across most regions. Five are in the East of England, four in each of the East Midlands and Wales, three in each of the North East and South West, two in each of the North West and West Midlands and one in both the South East and Yorkshire and the Humber. Several of the areas with high ISA savings relative to local earnings have a relatively high proportion of older residents and are popular retirement areas.

Regionally, there is no clear link between the level of average earnings and the size of average ISA balances. London and South East have levels of average earnings that are above the UK average, but average ISA savings balances in relation to regional average earnings are 20% and 25% respectively - lower than the UK average of 27%.

On the other hand, average earnings in Wales are amongst the lowest in the UK but, on average, ISA savings balances are equivalent to 32% of average gross annual earnings – the highest proportion in the UK.

There is virtually no difference in ISA savings by gender with men having an average ISA balance of £6,980, just 1% higher than the average ISA savings balances of women of £6,891



Martin Ellis, chief economist at Halifax, comments: "The level of savings invested in ISAs varies significantly across the country. Everyone has an annual allowance of £3,600 to place in a cash ISA, which will earn interest free of tax.

ISAs are the principal tax free savings vehicle for most people and provide an important tool for those looking to plan for the future especially in the current economic climate."