ISA applications rise by 52%

According to research by Fair Investment Company, ISA (Individual Savings Account) applications were up 52% for the start of the 2010/2011 tax year compared with the start of the 2009/2010 tax year, headlinemoney.co.uk reports.

The findings revealed that applications for both cash and stocks and shares ISAs were up by more than half for the period between 6-9th April 2010 (the first three days of the tax year), compared with the same period a year earlier.

Nick Scarrett, head of pensions and investment at Fair Investment Company, said: "There could be a number of reasons for this, but one of the main ones is likely to be the fact that the ISA allowance has been increased considerably - from £7,200 to £10,200."

Meanwhile, according to official Government statistics, the percentage of earnings Britons are setting aside as savings or to pay off debt dropped from a long-term average of around 7% to a mere 1.5% in 2008.

A spokesperson for debt management company Gregory Pennington commented: "It is encouraging to see the number of applications for ISAs increasing - this suggests more people are looking to take advantage of the increased allowance and save their money.

"People save for a variety of reasons, but one particularly effective use of existing savings is to pay down debt. This can help an individual improve their debt management skills, save on interest and pay off their debts in a shorter space of time."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.