Nov 2 2007
The amounts of money being saved in individual savings accounts (Isas) by UK consumers looks set to increase dramatically over the course of the next few years, it has been claimed.
Alliance & Leicester is convinced that by 2012 around a third of all monies being saved in the UK will be deposited into these increasingly popular tax incentivised savings vehicles.
Many people invest their cash into an Isa in an effort to secure a better financial future for their children and the latest figures show that these vehicles now account for a fifth of all the savings held in the UK.
Ewan Edwards, head of savings at Alliance & Leicester, said: "If current growth continues, then in the next five years personal cash savings could grow to around £1 trillion.
"Five years from now Britain's savvy savers are likely to have over a third of their cash savings in tax efficient accounts such as Isas - a massive increase from five years ago, when just a seventh (14 per cent) were sheltered from the tax man in this way."
The most recent tax saw record investments into cash Isas in the UK, HM Revenues & Customs revealed recently.
