A decade of ISAs

The number of ISAs to which subscriptions have been made has risen by 53% from 9.3 million in 1990/2000 to 14.2 million in 2008/09, according to the Halifax.

Over a third of UK households have an ISA

In 2007/081, 37% of all households in the UK held an ISA; a 5 percentage point increase since 2002/032 (32%). The South East has the highest proportion of households with an ISA (44%); marginally higher than the East of England (43%) and the South West (42%). In contrast, only 18% of households in Northern Ireland have an ISA; the lowest in the UK.

ISA saver growth highest among the under 25s

The number of ISA savers under the age of 25 has risen by 88% from 605,000 in 1999/2000 to 1,140,000 in 2006/071. The 55-64 age group recorded the second highest increase (67%). The 25-34 year old age group saw the smallest rise (24%).

ISA saver growth fastest among female savers

Between 1999/00 and 2006/071, the number of female savers subscribing to an ISA rose by 52% to 6,335,000.  This significantly exceeded the 35% rise in male savers over the same period.  The number of male ISA savers continues to exceed the number of female savers - to 6,423,000 to 6,335,000 - but there were just 1% more male than female ISA savers in 2006/07 compared to 14% more in 1999/00.  

ISA saver growth fastest in Scotland

The biggest percentage increase in the number of ISA savers between 1999/00 and 2006/071 was in Scotland (57%), followed by the North East (53%) and the East Midlands (53%). West Midlands recorded the lowest growth (34%).

Cash accounted for 58% of the value of all ISA savings in 2009 compared with 42% in the stock and shares component. This is the reverse of the situation in 1999/2000 when stocks and shares accounted for 90% of total ISA funds against 10% in cash.

Cash ISAs

The value of cash ISA savings has risen dramatically since the first anniversary of their introduction. The amount invested in cash ISA deposits has increased from £12.3 billion at the end of the 1999/2000 tax year to £169.5 billion in December 2009. In 'real' terms there has been an eleven-fold increase (i.e. after adjustment for the increase in retail prices). The value of cash ISA savings in 2009 rose by 5%.

Suren Thiru, economist at Halifax, commented: "It's clear that ISAs hold an enduring appeal with savers with take up growing some 53% over its history. It's encouraging to see that the youngest savers are also keen to benefit from the tax free status the ISA wrapper offers with growth highest amongst the under 25s."