Cashpoint

The amount invested in cash ISAs plunged nearly £20billion in the last financial year.

Figures from HMRC show £39.2bn was put into tax-free cash individual savings accounts, down from £58.7bn the previous year.

One reason for the sharp fall is the new personal savings allowance which permits basic rate taxpayers to get £1,000 of interest tax-free each year.

It saw savers shun miserly rates on cash ISAs in favour of better returns elsewhere.

The average, variable-rate cash ISAs pays just 0.33%, Bank of England data shows. That compares to 0.79% on a one-year fixed bond and 1.6% on a three-year bond.

Other explanations include last August’s Bank of England rate cut and an overall drop in people saving.

Meanwhile, the amount invested in adults stocks and shares ISAs now stands at £315bn, compared with £270bn in cash ISAs.

One explanation is rising share prices – especially in the FTSE 100 – thanks in part to the weak pound.