According to the bank, a collective £11 billion-worth of savings has been taken out of the tax-free interest accounts in order to pay bills, purchase necessary items or just provide a treat in the current economic climate.
With the average saver taking £1,573 out of their Isa over the last year, 39 per cent said it was for general living expenses, 22 per cent used the money for luxury items and 19 per cent needed to make urgent home repairs .
Reza Attar-Zadeh, director of savings and investments at Abbey, said: "The sharp increase in the amount that people are withdrawing shows that many of us may have needed our savings to make ends meet, and just goes to highlight the importance of having savings to fall back on."
Bradford and Bingley recently announced a market-leading two-year Isa offering a rate of 3.75 per cent and the ability for over-50s to take advantage of the new £5,100 allowance from October 6th.
