Regular savers roar to life during ISA season

March saw a three-point uplift in the Nationwide Savings Index, following on from the previous month's six-point rise. A three percentage point increase in the frequency of regular saving (51% from 48%) played a part in this latest increase and the timing may not be a surprise given that March is in the midst of the busy ‘ISA season'.

The months between February and May are sometimes known as the ‘ISA season' because this is the time of the year when many savers rush to use their annual ISA allowance either side of the tax year. And it is possible that March, the last full month before the end of the tax year, may have had a positive impact on consumer sentiment on savings. There has also been a slight improvement in the perception of Government policy encouraging people to save.

Andy Hutchinson, Nationwide's Head of Savings says:  "Last month I said that, as we approach the end of the tax year, we would expect to see more people open or top up their ISAs before they lose this year's annual ISA allowance forever. This certainly seems to be the case and we expect to see around two thirds of the total ISA business in the savings industry happen between February and May.

"Now that the new tax year has started, some savers' attention will be switched onto saving as early as possible in an ISA to maximise their tax benefit. With this in mind, it wouldn't be a surprise to me if the Savings Index rose again in April. There has already been a nine- point increase since January 2010."