Cash on Top as Isa Savings Hit Record

Cash Isas made up three-quarters of new accounts, while the amount saved in total increases to £620 billion

James Gard 9 June, 2021 | 1:14PM
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Cash remains the overwhelming popular option for tax-free savers, according to the latest data from HMRC on Individual Savings Accounts (Isas). Cash Isas made up 75% of all new Isa accounts for the tax year 2019/2020, the final month of which included the first month of UK lockdown and the stock market crash. The data also showed that Lifetime Isa accounts, which are designed to help younger people buy their first property, more than doubled in a year.

Around 13 million Isas were opened in the tax year 2019/2020, up 16% from 11.2 million in the previous tax year. This is still below levels seen 10 years ago, when 15 million accounts were opened in the 2010-2011 tax year. The amount subscribed in the financial year, £75 billion, was a £7.1 billion increase from the previous tax year and the highest amount since 2015/2016, when nearly £80 billion was saved and invested. Overall, the amount of money subscribed into Isas in total hit a record of £620 billion.

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James Gard  is content editor for Morningstar.co.uk