Isa accounts show record deposits

3 June 2008

The credit crunch and the economic slowdown have boosted the rate at which people are saving, new figures suggest.

According to data released by the Building Societies Association (BSA), the amounts deposited in cash Isa accounts reached record levels in April.

The BSA said that £1.82 billion was deposited by savers compared to the £1.35 billion deposited last April.

One reason for the popularity of cash Isa accounts is the prevailing uncertainty that surrounds the performance of the stock markets.

Adrian Coles, director general of the BSA, said: “Building society cash Isas were particularly popular because of a less optimistic outlook for future stock market performance.”

Saving seems to be a growing trend. In the final quarter of 2007, building societies took £7.2 billion in deposits, almost a three-fold increase on the level of savings in the last quarter of 2006.