£207 billion held in cash ISAs in the UK – 14 per cent higher than a year earlier. What does this indicate?

Savings continued to grow , with deposits in notice accounts and cash ISAs up by ten per cent or more through the quarter, UK Finance revealed in new data.

More households reported precautionary saving against an uncertain economic backdrop, even as real wage growth softened and savings rates drifted lower. 

At the end of September, households held £295 billion in notice accounts and £207 billion in cash ISAs, respectively ten and 14 per cent higher than a year earlier. 

This comes as the tax free allowance in cash ISAs in the Budget was reduced to £12,000 from £20,000.

Eric Leenders, Managing Director of Personal Finance at UK Finance, said: “Savings growth has moderated but remains strong by historic standards, with households continuing to build precautionary buffers against an uncertain economic backdrop ahead of the Autumn Budget."

Responses asap please.

• What does this indicate about the economy in the UK?
• What advice do you have to people with a lot of savings in cash ISAs?
• How will the Budget affect the amount of money in cash ISAs?