Almost four in ten households have an ISA - Savings - News - Moneyfacts

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Almost four in ten households have an ISA

Almost four in ten households have an ISA

Category: Savings

Updated: 17/02/2010
First Published: 17/02/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The reach of the ISA has been revealed by new research which shows over a third of UK households have an account.

Some thirty seven per cent of households have access to an ISA account, according to figures from Halifax, a rise of five per cent since 2002/03.

The South East has the highest ratio of households to ISAs, with 44 per cent enjoying access to a tax free savings vehicle. The East of England (43 per cent) and the South West (42 per cent) also rank highly.

By contrast, just 18 per cent of households in Northern Ireland have an ISA.

The figures reflect a decade of growth for ISAs. The number of accounts to which subscriptions have been made has risen by 53 per cent from 9.3 million in 1999/2000 to 14.2 million in 2008/09.

Suren Thiru, economist at Halifax, said the increases showed that ISAs hold an enduring appeal for savers.

Encouragingly, in the period between 1999/00 to 2006/07, ISA growth was highest amongst those aged 25 and under, with numbers rising from just over 600,000 to 1.14 million.

The 55 to 64 age group showed the second highest rise, at 67 per cent.

Revealing a snapshot of the ISA sector, figures found that as of 2009, cash ISAs accounted for 58 per cent of the value of all ISA savings, compared with 42 per cent in stocks and shares.

This marks a sea change from 1999/00 when stocks and shares accounted for 90 per cent of total ISA funds, against ten per cent in cash.

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