In the 12 months since the launch of the new Isa allowance, Halifax has seen its cash Isa balances increase by 44 per cent on average, versus those opened 12 months ago.
The bank’s latest spending review - from research conducted in July with over 2,000 UK adults - found that the average balance of an Isa account opened in June this year was £10,299 compared to £7,143 in June last year.
Additionally, when comparing June 2015 openings to the average balance of all existing Isa accounts (£5,170), the amount has more than doubled.
While a quarter of savers do not currently have an Isa, and just over a third (37 per cent) did not increase the amount they saved since the New Isa was launched in July last year, Halifax customer data showed the positive affect that the allowance has had on savings habits for many.
Savers between 25 and 34 have increased their tax-free savings pot more than any other age group year-on-year, with the average balance of a new Isa account for this age group increasing 48 per cent (£5,455 in June 2015 compared to £2,823 June 2014).
Unsurprisingly, the older the saver, the higher the average Isa saving balance, according to the bank, with all customers over 55 now within less than £1,200 of their 2015 to 2016 Isa limit on average.
It also noted Bank of England data showing that since 2010, Isa balances have tended to rise at the start of new tax year only, coinciding with the renewal of the personal allowance, when ‘topping up’ is at the forefront of savers minds.
However, the introduction of the Nisa saw balances increase through the latter half of the year in a break with previous trends.
Taking a closer look at April to July this year, almost three quarters (72 per cent) of savers managed to add to their savings over this period, slightly less than the first three months of the year, when 76 per cent of savers were able to add more to their savings.
Giles Martin, head of Halifax Savings, said that it is clear from the customer data that many people have the appetite, and more importantly the funds, to save more tax-free and have been making the most of Nisa since it was introduced.
Other key findings included the number of cash Isa customers in the UK growing by 5 per cent in the year to May 2015, from 10.2 million in May 2014 to 10.7 million this year.
peter.walker@ft.com
