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Why not add to your cash ISA stash?

Why not add to your cash ISA stash?

Category: Savings

Updated: 04/04/2011
First Published: 22/10/2010

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 It is now over 6 months old so the content may be out of date.

Savers have the equivalent of around a third of their annual earnings stashed away in a cash ISA, new research has revealed.

According to Halifax, the average balance held in a cash ISA is £7,782, a figure which is roughly one third of the average UK earnings of £26,075.

Savers aged 75 and over were found to hold the highest average cash ISA balance of £13,912.

However, there is definitely scope for increasing savings amongst those aged between 16 and 24, whose average cash ISA balance was found to be £1,848.

Those aged 25 to 34 also have plenty more room for saving manoeuvres, as they currently have an average cash ISA balance of just £2,388.

If you're one of the thousands of people who really ought to be making more of the tax-free savings available through a cash ISA, our cash ISA best buy charts give you the run down on all the latest and greatest cash ISA deals currently available.

Amongst the famous names currently making waves in the cash ISA market are Halifax, Chelsea Building Society, Barnsley Building Society, Nationwide and Birmingham Midshires.

The maximum amount that can be saved in a cash ISA at present is £5,100 a year, although this is set to increase by a further £480 from April next year.

"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," said Nitesh Patel, economist at Halifax.

"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."

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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