Halifax ISA data reveals customers love cash

Halifax ISA research released today showed that cash is still the most popular ISA category.

The UK's largest savings provider found that over the past three years cash ISAs have recorded growth in balances of 129 per cent, bringing the total held in them to £81.6 billion.

Stocks and shares ISAs have also grown by 68 per cent during the same period.

"Perhaps because most people are comfortable with the concept of cash deposits, cash ISAs are the most popular choice and more than two-thirds of those people with an ISA have chosen to save in the cash version," said Cheryl Millington, head of savings at Halifax.

Over 9 million Individual Savings Accounts (ISAs) were opened UK-wide in the first half of 2004/05, up six per cent on the same period last year.

However, even so, she feels that ISAs are still underused by the majority of the UK: "Less than a quarter of the UK adult population subscribe to an ISA each year, despite the fact they are one of the most tax effective ways of saving for the future."

Ms Millington concluded: "We hope that a recent Government consultation on extending the current ISA limits will encourage more people to benefit from tax-free savings."