Saving accounts such as Isas can help people to save a substantial amount of money, it has been suggested.

John Prout, sales director at NS&I, said: "The increase in the ISA allowance last April will inevitably have encouraged more to be invested in Isas, and that is certainly a good thing."

His comments follow in the wake of recent statistics made public by HM Revenue and Customs, which revealed that the amount of money being put away into Isas had increased substantially.

The figures indicate that the money being saved in cash Isa accounts had risen by seven per cent in the 2009/10 fiscal year, in comparison to that saved in 2008/09.

It was also found that investments into stocks and shares Isas had also increased by 29 per cent since last year.

George Ladds, head of investment and pension research at Fair Investment Company, explained: "The Isa allowance increased substantially from £7,200 in 2008/09 to £10,200 in 2009/10, £5,100 of which can be invested into a cash Isa, so it is also no real surprise that there was an increase in the amount of money being invested into cash Isas."

He further pointed out that the increase in the amount of money being saved in Isa accounts could be influenced by the fact that these offered better rates in comparison to those offered by other types of savings accounts.

His comments were supported by Mr Prout of NS&I, who highlighted the tax-saving feature provided by Isa accounts. He said: "Using the allowance every year can soon lead to a substantial sum - all fully protected from any tax liability."

These suggestions are especially helpful at a time when people are struggling to meet their financial needs and when personal debt incurred by Britons is on the rise, as revealed by Credit Action, the money education charity.