More money is being put into tax-free savings accounts than before, building societies have said.
More and more people are putting money by in a tax free Individual Savings Account (ISA), new research from the Building Societies Association (BSA) suggests.
According to the body UK savers put £1.82 billion into the accounts in April, a record amount. By way of comparison, this figure was just £1.35 billion in April 2007.
ISA accounts allow people to save a maximum of £3,600 in cash and £3,600 in stocks and shares investments tax free each financial year. They therefore represent a popular alternative to savings accounts, and are also often used to supplement pension plans.
The BSA speculated that the current gloomy market outlook caused by the credit crunch could have resulted in many people switching from stocks and shares to cash savings over the month.
Adrian Coles, director general of the body, said: "Building society cash ISAs were particularly popular because of a less optimistic outlook for future stock market performance."
Evidence for an increase in the amount Britons are saving also came last month from the British Bankers' Association, which released research showing that £2.8 billion was put into personal accounts in April.
This represents around £400 million above the average monthly total across the previous six months.
