But the Help To Buy Isa, launched in December 2015, also targeted potential first-time buyers. Both types of account offered a Government handout of 25pc, albeit with different rules around contribution limits – the maximum Government contribution – and the type of property which could be purchased.
As Isas enter their twenties, what might their future look like?
Currently, you can split your £20,000 annual Isa allowance between four different types of Isa, but not into more than one Isa of the same type in the same year.
This can create some confusion, so a possible future development could let people subscribe to as many Isas as they’d like in a year, in the same way that consumers can pay into more than one pension (as long as they stay within the annual allowance in both cases).
Other areas for discussion involve the tax treatment of Isas on the account holder’s death.
Pensions can be passed on tax-free after death, but Isas are potentially subject to inheritance tax unless they are passed to a spouse. Changing these rules could encourage more people to save into an Isa alongside a pension.
Finally, more could be done to make cash Isas more appealing. Data from HMRC shows the number of subscriptions into cash Isas fell by 697,000 during the 2017-18 tax year.
The reason for this is twofold. Firstly, cash Isas – alongside other cash savings products on the market – are offering abysmally low interest rates.
Secondly, the introduction of the personal savings allowance in April 2016 means basic rate taxpayers no longer pay tax on the first £1,000 of savings interest, while higher-rate taxpayers can earn up to £500 in interest tax-free. For many, this negates the need to open a cash Isa.
Learn more about Ford Money’s Isa range at
* Tax treatment is dependent on the personal circumstances of each customer and may be subject to change in the future.