Tisa: Isas will increase in popularity

Government research into independent savings accounts (Isas) has confirmed that they are an “increasingly popular savings vehicle”, reports the Tax Incentivised Savings Association (Tisa).

A study by HM Treasury and HM Revenue & Customs found that 39 per cent of UK consumers currently hold an Isa, making it the fourth most popular form of savings.

Of these, 76 per cent make one or no withdrawals on their accounts per year, while 45 per cent make one or more payments in a year.

Tony Vine-Lott, director general of Tisa, said that the research made “extremely interesting reading”.

“[Isas] are well known, allow savings for a multitude of purposes while allowing flexibility that many consumers find useful, and are increasingly fulfilling a long-term savings need,” he explained.

He claimed that the government’s proposals yesterday, which included increasing the investment limit on the accounts and making them simpler to use, would only serve to increase the popularity of Isas next year.

© Adfero Ltd

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