No one knows exactly how many individual savings account (Isa) millionaires there are - but we do know that this financial milestone has been achieved by many investors. And the big rise in the annual Isa limit announced in the 2014 Budget should make it easier for diligent savers to join the Isa Millionaires Club.
Stockbroker Brewin Dolphin says it has 15 clients with at least £1m shielded from the taxman in an Isa wrapper. Barclays Stockbrokers claims to have 63 clients who have achieved that milestone. The first Isa millionaire was Lord Lee who achieved this goal in 2003.
By maximising your full Isa allowance every year, Fidelity Personal Investing calculates that you could become an Isa millionaire in 27 years and 10 months. This is based on a hypothetical illustration of an investor who invested £15,000 on 1 July 2014 and subsequently invested the full Isa allowance each year at the start of the tax year with an annual growth rate of 5 per cent, a service fee of 0.35 per cent and an average annual management charge of 0.75 per cent. The example also assumes the Isa limit increases in line with a 2 per cent inflation rate each year