Across the country over a third of savers are using cash ISAs to grow a pot for life after work, the figures suggested.

The nationwide survey of 1,000 individuals, carried out by Alliance Trust Savings, found that although one in three (32%) had more than £50,000 in savings, cash ISAs remained the most popular form of savings, used by nine out of ten (91%) of respondents.

Those living in Northern Ireland, Scotland, Wales and the West Midlands were more likely to hold a cash ISA at 96%, slightly higher than the national average.

This was in contrast to stocks and shares ISA where less than a third (29%) of the respondents have one, with help to buy ISAs even less at 5%.

Over a third (36%) admitted to using cash ISAs as a way to save for retirement. This figure rose to almost half (48%) of those living in the north, 44% of those in Yorkshire and Humber and 43% of those in Wales.

In London, 30% said they were using cash ISAs for retirement funds, with a similar number (32%) planning to use their cash ISA savings for a deposit on a house, compared to a national average of 13%.

And almost half (47%) of those Londoners surveyed invest regularly into a stocks and shares ISA and are most likely to pay regularly into a Help to Buy ISA, with 13% holding one. There were also likely to have bigger savings pots, with 43% having funds over £50,000.

Sara Wilson, head of platform proposition at Alliance Trust Savings, said: “Although tax free cash ISAs can be a useful pot for short term or emergency funds, those with longer term plans for their money may suffer by missing out on the greater potential for growth that stock market-based investments can provide. Our survey found that ISA holders across the UK are building sizable savings pots, with a third holding more than £50,000. With low interest rates and a rising rate of inflation, cash accounts could actually be losing you money, so those with large cash savings should consider moving at least some of their money into a stocks and shares ISA.”