More people who want to start saving money are choosing individual savings accounts (ISAs) as their preferred savings vehicle, research shows.
In the first three months of the financial year, the take-up of the tax-efficient savings vehicle has shown growth of 13.1 per cent when compared with the same quarter in 2004, Intelligent Finance reveals.
Some 7.6 million people started saving money in ISAs in the first financial quarter. Mini cash ISAs proved particularly popular, with 5.6 million people to invest their savings in these.
It is believed that ISAs are on track for a "record year", says Nick Robinson, managing director at Intelligent Finance.
He points out that people of all ages and life stages are choosing to start saving money in ISAs, as they are a "great way to save".
Mr Robinson also mentions the tax benefits, pointing out that savings account holders will not be taxed on savings interest they earn.
Competitive savings interest rates and instant access to cash that many ISAs offer also encourages people to start saving money in these savings accounts.
"We are constantly advising people to save more and if we want to encourage more of this then it's important that they, not the taxman, should see the benefits of their savings," Mr Robinson comments.
Record year predicted for those saving money in ISAs
Record year predicted for those saving money in ISAs
Fri, 04 Nov 2005
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