There were fewer Isa subscriptions in the 2013-14 tax year according to the HMRC end of financial year Isa statistics.
During this time there were a total of 13,473 Isa subscriptions which is less than the 14,606 subscriptions made in the 2012-13 tax year.
However within these recent Isa subscriptions more investors have been allocating towards stocks and shares than buying into cash.
In total, assets in stocks and shares were £18.4bn in the 2013-14 year with £38.8bn in cash Isas.
This shows a change in attitude from 2012-13 when £40.9bn was held in cash Isas and £16.5bn was held in stocks and shares Isas.
Close Brothers Asset Management certified financial planner Richard Watkins says: “It’s likely that for many people paying down debt has become a top priority, but long-term savings cannot be left on the backburner.
“We’re seeing more people plough their money into equities and taking advantage of the recovery we have seen in the markets in the last 18 months. However, it’s important that investors understand their risk appetite, as well as prospective returns, and ensure they have a balanced portfolio that matches this.”
Brewin Dolphin head of corporate affairs Charlotte Black says: “Cash Isa rates remain derisory.
“The HMRC statistics show that British savers are increasingly realising that this valuable tax break can be better used. And although three quarters of new accounts opened throughout the country are still in cash accounts, the important valuation of adult Isas in the UK is now split equally between the two types, showing the value that can be gained by investing your money in the stockmarket.”