Brits are still into the saving habit, opening 14.6 million ISAs during the 2012/13 tax year despite falling rates across the market.
New figures from the Office of National Statistics show that savers invested a record total of £57.3 billion into tax-free accounts during the last tax year, an increase of 7% on the previous year.
Despite the fall in savings rates initiated by the Funding for Lending Scheme, which launched in August, savers opened 11.6 million cash ISAs and 2.8 million investment ISAs over the course of the financial year.
This activity increases the number of adult ISAs to 24.4 million, which are a vital means of protecting savers from the taxman.
Junior ISAs
Encouragingly, there was also a considerable increase in the number of junior ISAs opened, as more families put aside cash for their children.
Statistics showed that 295,000 ISAs were opened on behalf of children in the last tax year – over four times the 71,000 opened during the 2011/12 tax year.
Junior ISAs proved more active than Child Trust Funds (CTF), attracting an average investment of £1,327.
The market for CTFs has come under attack for a lack of flexibility and competitiveness, though the government has earmarked proposals that will allow the 6.5 million fund holders to transfer money into ISAs instead.
The consultation to allow the switch is due to end on 6 August.
"A record amount being invested shows investors' appetite for ISAs is growing," said Danny Cox of Hargreaves Lansdown.
"Junior ISAs seem to be gaining some momentum which will be improved once transfers are allowed from Child Trust Funds."
James Booker
Which4U
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