Aug 11 2006
New research reveals Isa balances rose by almost a third in 2005.
A study by Datamonitor showed 2005 was the strongest year for growth in UK Isas since 2002 with balances hitting £188.9 billion.
The surge in Isas was said to be down to the strengthening stock market and higher equities interest, along with chancellor Gordon Brown's comments that they would continue to have a tax-free status.
The popularity of mini-Isas led the growth – with the amount saved in minis rising by 43 per cent to £24.2 billion – around four times the value of maxi-Isas.
Isa balances are expected to reach £236 billion by 2010 – with growth at 7.9 per cent annually over the next five years.
The study also looked at the average profile of an Isa investor – with them most likely to be aged between 55 and 59 and earning more than £1,000 a week.
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