Tax-free saving is becoming increasingly sought-after among Britons, new research reveals.

In figures published by Halifax, it was shown that Individual Savings Accounts (Isa) have surged in popularity since their launch in the 1999-00 tax year. Basing its findings on data carried out by the department of work and pensions and HM Revenue & Customs, the financial services firm revealed that the amount of money put away in such savings vehicles has surged sevenfold between their inception and the end of the 2007-08 tax year. In March this year, it was shown that the total value of Isa deposits stood at 207.8 billion pounds, a rise from the 28.6 billion pounds noted in 1999-00.

Over the space of the seven-year period, the number of Isas invested in was revealed to have increased by 59 per cent from 9.3 million to 14.7 million. Now, 35 per cent of all British households have an Isa, up from the 32 per cent recorded in 2002-03.

Halifax also showed that the annual amount of money invested into such savings schemes stood at 35.7 billion pounds at the end of the last financial year, with an average of 2,426 pounds being placed into each account. Seven years ago, meanwhile, the typical individual investment into an Isa was 3,064 pounds, although a total of just 28.4 billion pounds was placed in during this 12-month period.

And with more people having Isas, in addition to taking steps to increase the amount of money that they invest into these kinds of savings schemes, consumers may find that they are in a more comfortable position when it comes to managing their money later on in life. This could see them be able to handle personal loans repayments with greater ease, pay for bills that are more costly than they had anticipated or make major purchases more effectively.

Figures from the financial services firm also revealed that those in the south-east are most likely to have an Isa. Some 44 per cent of people in this part of the country were shown to have such a financial vehicle. Meanwhile, 42 and 40 per cent of consumers in the south-west and the east of England own an Isa. On the other hand, less than one in six (14 per cent) of those in Northern Ireland have this kind of savings product.

Commenting on the figures, Martin Ellis, chief economist for Halifax, said: “Isas have proved to be a highly popular savings vehicle since their introduction almost a decade ago. The number of Isa savers has increased significantly during this period. The Isa is the principal tax-free savings vehicle for most people and an essential element of their financial planning.”

Britons worried about their capacity to invest money into savings schemes might want to consider taking out one of the many debt consolidation loans currently available. By getting this kind of loan, borrowers may be able to merge various constraints on their spending into a single low-cost monthly repayment. This may leave them with more disposable income, cash which could then be placed into a savings scheme such as an Isa. Indeed, this may prove to be of assistance after Unbiased recently reported that 38.5 billion pounds was put into savings accounts during the second quarter of 2008, a drop from 42.9 billion pounds recorded in the same period in 2007.