May 21 2007
The amount of cash deposited into individual savings accounts (Isas) over the course of last month was worth 22.1 per cent more than was the case during April 2006, according to a report from the Building Societies Association (BSA).
Net receipts for cash Isas, which are commonly used to secure a child's financial future, rose from £1,452 million to around £1,773 million, BSA figures demonstrate.
However, pointing to the finding that net receipts for all kinds of saving in the UK increased by around 1.6 per cent between April 2006 and the same month this year, the association suggests that incomes around the country are being stretched.
Such difficulties have been put down to rising interest rates, which the BSA claims has left many people unable to contribute to their savings.
Reflecting on the latest findings, director general at the BSA Adrian Coles said: "It is imperative that people ensure that their finances can withstand any further increase in interest rates."
Last week, marketing manager at Alliance & Leicester Ross Dalzell suggested that British consumers are becoming increasingly aware of the potential benefits of opening an Isa.
