Savers look to ISAs as average balances rise by 23% in 3 years
Latest Halifax research shows UK savers are building on their ISA nest eggs. Average balances grew by 14% in the last year; from £7,836 in January 2011 - an increase of £1,113. The growth, which is a trend seen over recent years, shows that since February 2009 the average cash ISA balance in the UK has increased from £7,269 to £8,949 in January 2012 - representing a growth of 23%, or £1,680.
Martin Ellis, economist at Halifax, commented: “It is encouraging to see that in these tough times, savers are managing to build on their ISA balances, making use of the annual allowance. Indeed it is impressive that customers, on average, have an ISA balance equivalent to a third of annual gross earnings.
"At tax year end the 'ISA season' is in full swing and savers can access some very competitive rates in order to make the most of their hard earned savings. Judging by the ISA balances - savers still have spare allowance available to use up this tax year, so now is the time to use it before they lose it."