ISAs maintain popularity

This is a slight increase on the previous year's total of £53,772m - and the highest annual total since the introduction of ISAs in 1999.

Subscriptions into Stocks and Shares ISAs grew from £15,495m a year (2010/11) to £15,810m (2011/12). However this was offset by a small reduction in the total amounts paid into Cash ISAs from £38,277m (2010/11) to £38,050m (2011/12).

Commenting on these figures, TISA Director General Tony Vine-Lott said:

"It's a positive sign that overall contribution levels into ISAs have remained steady despite the economic squeeze being felt by many UK taxpayers.

"This is undoubtedly leading some people to opt to pay down their debts; as a result their capacity to save into Cash ISAs, which have become a haven for short-term saving, is being put under pressure. However, the increase in subscriptions into Stocks & Shares ISAs is indicative of a growing desire to invest over the longer term, for example to supplement income in retirement.

"ISAs are maintaining their popularity, due in large part to the fact that as well as being tax-efficient they are also easy to understand and access. Together with Junior ISAs, auto-enrolment in pensions and the move to create a range of ‘simple financial products' we will soon have a savings ‘suite' that will meet the needs of a diverse range of financial circumstances. This is essential if we are to increase the overall level of savings."