It appeared that cash savers are more interested about investment ISAs.
Britons ploughed a record £21.5billion into stocks and shares ISA in the last tax year, up from £17.8billion on the previous year, according to HMRC's data.
In total, there is now £518billion held in adult ISA accounts, almost equally divided between cash and stocks and shares.
The value of funds held in the cash tax-free accounts increased by six per cent, while the value held in stocks and shares ISAs increased by nine per cent compared to 2014-15.
Overall £80bn was put into Adult ISAs in 2015-16, an increase of £1 billion from the year before.
Experts said more money into stocks and shares was a reflection of ultra low interest rates, which now look set to stick around for even longer.
Earlier this month the Bank of England cut core interest rates from 0.5 per cent to 0.25 per cent.
In contrast the FTSE 100 has reached 14-month highs this month, and 45 of the firms pay dividends above three per cent.
Danny Cox, chartered financial planner at Hargreaves Lansdown, said: "Record subscriptions to stocks and shares ISA are a reflection of interest rates being at the lowest of the low.
“Equities are pretty well the only game in town for yield, for those happy with the additional risk.
"Rising markets have helped push total ISA funds to a record high of over half a trillion pounds.
"ISAs remain the saver and investor’s friend and should form the foundations of good, blue-chip portfolio planning.”
Up to £15,240 can be sheltered from tax in ISAs in the current 2015/16 year.
The limit can be split as desired between cash, stocks and shares, or innovative finance ISAs.
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