The first five months of 2023 saw an almost three-quarter increase in people opening cash ISAs, but advisers believe the market has become too complicated.

Specialist bank Shawbrook saw a 73% increase in cash ISA account openings compared with the previous year.

The bank said it believes this was driven by savers’ quest for more tax-efficient means of preserving their money.

The data revealed a 55% increase in the amount of funds being deposited into cash ISA accounts from January to May 2023 when compared with 2022.

Shawbrook head of savings Adam Thrower said: “More people are opening ISA accounts because they’re becoming more aware of how taxes can affect their savings.

“With interest rates going up, using ISAs to save money while paying less tax is a smart choice. People should now carefully think about what type of savings accounts they use and what interest rates they offer to make sure it matches their money goals.”

The ISA figures come as AJ Bell publishes research which found 65% of financial advisers believe the ISA market has become unnecessarily complicated.

Around 84% went as far as to say they back the concept of having one ISA product that covers all the existing benefits of ISAs.

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