Wednesday 7th November 2007
Britons have more money in individual savings accounts (Isas) than ever before, it has emerged.
Figures from HM Revenue & Customs, published by the BBC, show a greater quantity of funds in the tax-free savings schemes than at any point in the past.
Some £208 billion is now held in Isas - compared with a total of £29 billion in April 2000.
This could be set to increase still further, as the broadcaster notes the tax-free limitations on Isas are to be relaxed in 2008.
From April of next year, the £3,000 maximum annual deposit into a cash Isa is to be raised to £3,600.
And the £4,000 limit on a stocks and shares mini-Isa is to be increased to £7,200, with this also the new maximum which may be tax-exempt through a combination of the two varieties of account.
The BBC observes that the savings vehicles are gaining in popularity faster than has previously been the case.
While the increase in deposits stood at £28 billion year-on-year until 2006-07, in that financial period an additional £33 billion was paid in by savers.
James Falla, director of debt consultancy Thomas Charles, suggests that the recent credit crunch may have many Britons looking to tackle their expenditure.
He asserts that there is likely to be a trend away from using short-term borrowing such as credit cards, which may see the level of savings being put away increase still further in the run-up to Christmas.
"The last thing anyone wants to do is to sit down and have a good look at their finances," he comments.
"If people could take that step now, before Christmas, that would put them into a very good stage for the new year."
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