Soaring popularity of ISAs

There were 14.2 million ISA accounts, including both cash and stocks and shares ones, at the end of March last year, up from 9.3 million in March 2000 – a year after they were first launched, according to

Halifax.

The group said at least one person in 37 per cent of households had an ISA, with people in the South East most likely to have one at 44 per cent.

People paid a total of 37.48bn into the accounts during the 2008/2009 tax year, 32 per cent more than was invested in them during the year in which they were launched.

But the average amount paid into each account has actually fallen, dropping to 2,636 last year, down from 3,064 in 1999/2000.

People collectively had 169.5bn held in ISAs at the end of last year, an 11-fold increase in real terms on the 12.3bn that was held in them in March 2000.

Cash ISAs were more popular than their stocks and shares equivalent, accounting for 58 per cent of all money saved in 2009, despite the fact that people have the option of saving twice as much into shares ones.