Savers draining ISAs

SAVERS withdrew record amounts of cash from their ISAs last month amid dismal returns and spiralling debts.

A report by trade association UK Finance showed £1.5bn was pulled out of ISAs in October. That left £159bn in ISA accounts – the lowest level since July 2014.

The figures came just days after top Bank of England officials bemoaned the fact many big banks have not passed on this month’s rise in interest rates – from 0.25pc to 0.5pc – to savers. They fuelled fears over the health of household finances in Britain amid concerns families are not saving enough and are instead running up debt. A staggering £8bn is expected to be spent in the Black Friday sales – with much of it going on credit cards.

ISA rates are at rock bottom levels and Justin Modray of consumer group Candid Money said: ‘Interest rates are so low people think there is no point in saving.’