Sales of cash ISAs have grown strongly since they were launched in 1999, yet there are still many savers who are not taking advantage of their annual ISA allowance and are, thus, over-lining the taxman’s pocket. This report seeks to reveal the extent of ‘the ISA gap’ and identify the reasons that are preventing this market from reaching its full potential.

In 2005/06, subscriptions to both mini stocks and shares and maxi ISAs increased for the first time since their launch, off the back of a rallying stock market and improving investor confidence. This report looks into whether this growth can be maintained, and assesses what can be done to further improve take-up.

Drawing on a range of industry and consumer research, the report offers a thorough examination of the current state of the ISA market and evaluates its future prospects. Independent consumer research was undertaken in order to provide additional insight into consumers’ attitudes, behaviour and approaches towards saving and investing, with the primary focus on ISAs.