BBA: ISA deposits up 38% following reforms
The BBA’s November High Street Banking statistics showed that ISA deposits in the year to November were 38% higher than in the previous 12-month period.
Since the changes to ISA rules on 1st July, the last five months have seen net inflows of £8.6 billion. A total of £12 billion went into ISAs in the 12 months to November, up nearly 38% on the same period a year earlier.
Overall personal deposits are growing by 3.5% annually.
During the Autumn Statement this month, George Osborne announced that he will increase ISA limits to £15,240.
He also announced further ISA tax reforms, stating:
"At the moment, when someone dies, the savings in their ISA lose their tax-free status and their spouse starts paying tax on that money.
"From today, I can announce that when someone dies, their husband or wife will be able to inherit their ISA and keep its tax free status."
Industry experts have said that the ISA reforms will 'change attitudes to saving' and are expected to further increase deposits.
Recent BlackRock research found that up to 40% of Britons save or invest in ISAs.
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