Third of UK earnings invested in ISAs

The UK average ISA balance is £7,782, which is equivalent to just under a third of the UK's average earning (£26,075), according to the Halifax. ISA savers in Wales and Northern Ireland have the highest balances in relation to average regional earnings with ISA savings equivalent to 37% and 36% of average annual gross earnings.

Nitesh Patel, Economist at Halifax, comments: "It's great to see UK savers are taking advantage of the tax free benefit of an ISA by investing just under a third of their income. Frustratingly though, whilst  ISAs have been available for over a decade, savers are still not making the most of their savings by using their full annual ISA allowance with the UK average of just £7,782 being saved which is only 1.5 times the annual limit."

Average ISA balances by age

The 75+ age group held the highest average ISA balance of £13,912. Average balances for the age group 16-24 was £1,848, rising to £2,388 for ISA savers between 25-34 - below the average for all ages of £7,782.

Nitesh continues: "It's also encouraging to see so many elderly savers (75+) so switched on to ISAs. This group holds the highest ISA balances at £13,912 - this surely underscores that it is not just the younger generation who are financially savvy."