Year of the ISA

18 March 2006
The number of people taking advantage of tax-free savings could hit a new high this financial year, according to a new report.

Research from bank Intelligent Finance (IF) finds that almost 13 million people could have opened an Individual Savings Account (ISA) by the time the tax year closes this April.

If the current take-up trend continues in the final weeks and predictions prove correct, 12,928,000 ISAs could be taken this tax year, beating the current 12.5 million record for 2002/2003.

The survey also showed the 15 per cent of adults with some savings - but without a tax-free account - planned to open an ISA before April 6th.

Encouragingly, 18 to 24-year-olds are almost as enthusiastic about ISAs as the more mature 55-to-64 age bracket, 19 per cent and 21 per cent of those polled planning to invest in one respectively.

Mini cash ISAs are set to be the most popular product, offering £3,000 in sheltered savings each year, with £4,000 available in shares.

Mark Parker, managing director, said: "ISAs are a flexible, secure and transparent way to save and it is encouraging more people are taking advantage of the tax-free benefits they offer."

To read more about ISA investment, click here.

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