According to a new report by Datamonitor, sales of ISAs grew at their strongest rate for three years during the 2005/6 financial year.
The volatile international market and public debates over pension savings and a growing 'debt culture' have sparked a renewed interest in savings and resulted in a surge of tax-free package applications.
"What we have seen in the last tax year is there have been more subscriptions to ISAs than any other year since they were launched," said Tony Vine-Lott, director general of PEP and ISA Managers' Association (PIMA).
"There has been more appetite for the stocks and shares ISAs because of the stock market turndown [and] there has also been an equal enthusiasm for cash ISAs.
"I think people have become increasingly confident about ISAs anyway," Mr Vine-Lott continued. "The product is more attractive to people and people are saving more so it's just a matter of where they put their money."
"As a result of both cash and stocks and shares increasing, the total is actually exceeding anything we have ever seen before," he concluded.
The total value of the ISA market in the UK was estimated at just under £190 billion for 2005.To read more about savings and investments, click here.
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