ISAs have proved popular with savers over the past decade as the number of accounts opened has increased by 53 per cent, according to Halifax.
In 2000 there were just over 9,000 subscribed ISA accounts, but this has since risen to more than 14,000 in 2009. In addition, the total amount invested has increased by 32 per cent from around £28billion ten years ago to over £37billion last year.
However, despite more than one in three UK households now subscribing to an ISA, Halifax has revealed that the average amount invested per account has fallen from approximately £3,000 to around £2,600.
Cash ISAs have proved the most popular with savers over the last decade, accounting for 58 per cent of all ISA savings compared 42 per cent in the stocks and shares option. This represents a significant change since 2000 when stocks and shares dominated – accounting for 90 per cent of the ISA market.
Meanwhile, ISAs appear to have proved an attractive savings solution for savers under 25 as their take up has increased by 88 per cent since 2000 from 605,000 to 1.1million in 2007.
Commenting, Suren Thiru, economist at Halifax said: "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."
© Fair Investment Company Ltd