The introduction of Isas has almost halved the level of regular savings being made, according to figures by the Association of Unit Trusts and Investment Funds.
Investment in regular savings plans fell from £431m in the first quarter of this year to £243m in the second quarter. Isas were launched on April 6.
Between April and the end of September £3.5 billion of investment fund Isas were sold, compared with £5.6 billion of Peps sold over the same period last year.
Autif director general Philip Warland believed the figures provides “absolutely clear and damming evidence” Isas have affected the level of regular savings being made.