Signs that savers are making the most of more generous Isa allowances have been reported by a bank, which said that average balances on new accounts have increased by more than £3,000 compared with a year ago.
Halifax said that the typical balance of a cash Isa account opened with it in June 2015 was £10,299 – which is £3,156 more than the typical opening balance of £7,143 in June 2014.
The average opening balance in a new Isa is around double the average balance across Halifax’s existing Isa accounts, at £5,170.
Changes introduced on July 1 2014 made Isas more generous and more flexible. The annual limit on the amount that people can put away in a cash Isa was near-trebled, to £15,000.
A new flexibility also came with the introduction of the new Isas, also known as “Nisas”, which means that people can save their full Isa limit each year in cash, stocks and shares, or any combination of the two.
The Isa savings limit for the 2015-16 tax year is £15,240.
Giles Martin, head of Halifax savings, said: “It is clear from our 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.”