Savers added £42 billion into cash ISAs in first half of 2024, data shows

Savers deposited an additional £42 billion into cash ISAs in the first half of this year, data from Paragon Bank has revealed.

19 Sep 2024

Savers deposited an additional £42 billion into cash ISAs in the first half of this year, data from Paragon Bank has revealed.

Paragon Bank found that, at the end of June 2024, there was £351.6 billion held in adult cash ISAs compared to £309.3 billion at the end of December 2023.

Fixed-term cash ISAs increased from £157.9 billion to £188.5 billion, the data showed. Total adult cash savings balances have increased by £70.7 billion to £1.18 trillion during the first half of the year.

Derek Sprawling, Managing Director of Savings at Paragon Bank, said: 'The level of deposits held in cash ISAs has rocketed in recent months, particularly in the fixed-rate segment of the market which has seen the level of balances double since the end of 2022.

'The increase is understandable given the growth in savings rates means more savers are facing the prospect of paying tax on money held in non-ISA accounts. Even though rates have moderated from their peak, there are still plenty of higher-rate taxpayers who could still benefit from utilising their ISA allowance to limit their exposure.'

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