A third of UK earnings invested in ISAs

Savers in the UK are investing their money in ISAs in order to achieve the best savings rates and make their money work for them.

Studies carried out by Halifax have revealed that the UK average cash ISA balance is £7,782 which is the equivalent of just under a third of the UK's average earnings of £26,075.

Nitesh Patel, economist at Halifax, said: "It's great to see UK savers are taking advantage of the tax free benefit of an ISA by investing just under a third of their income."

He added that frustratingly savers are still not taking full advantage of the savings interest rates and tax-free benefits offered by ISAs.

The survey also revealed that savers living in Northern Ireland and Wales have the highest ISA balances in relation to regional earnings with ISA savings equivalent to over 35 per cent of annual gross earnings.

ISA allowances have been increased by £480 to £10,680 from their previous limit of £10,200.
 

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2010-10-22 12:40:50 © Moneyextra.com