The new fiscal year may beckon in an era of British savings spearheaded by the tax-free Isas.

Martin Bamford, chartered financial planner for Informed Choice, explained that it was now possible for a couple to save over £40,000 in Isas that are exempt from tax cuts.

However, he was sceptical about what the long-term effects will be on the country's saving prospects.

He added: "We are still a long way from our previous savings ethic so it would need a major change in attitudes for people to stop their consumerism altogether and divert that cash to savings, particularly when a lot of consumer spending is fuelled by debt - not real cash."

During the 2010 Budget announcement chancellor Alistair Darling acknowledged the popularity of the Isa savings that are exempt from tax deductions.

Annual Isa limits were raised from £7,200 to £10,200 and are set to increase each year in accordance with inflation changes.

The additional £3,000 increase in allowance spurred a 52 per cent growth in the number of Isa applications within the first three days of the new fiscal year, reported Fair Investment Company.

Data published by Fair Investment Company states that 37 per cent of clients plan to invest the full £10,200 while 51 per cent made a lump sum investment at the start of the year.

Nick Scarrett, head of investment and pensions at the firm, observed that people were saving a greater percentage of their income. He pointed out that government statistics reflected a dip in British savings from seven per cent to 1.5 per cent in 2008. However, the figures for this year show a rise to eight per cent savings, the highest ever, Mr Scarrett added.

With its untaxed interest rates, Isas are an attractive option for savers of all income levels and age brackets.

Richard Saunders, chief executive of the Investment Management Association, said: "The Isa is and should remain the key non-retirement savings vehicle for all."