The UK has around 2,000 people who could be considered “Isa millionaires” according to figures from HM Revenue and Customs (HMRC).

On average the individuals are sitting on pots worth an average £1,412,000, with 60 investors holding pots worth about £3 million.

Data obtained by InvestingReviews.co.uk. also found about 80 pots were valued at £2 million-plus.

These figures came to light thanks to a Freedom of Information (FOI) request made by InvestingReviews.co.uk. to HMRC, which gave its most recent data, showing Isa account values in 2019.

Slough Observer: The individuals are sitting on a average of £1.4 million (PA)The individuals are sitting on a average of £1.4 million (PA)

The average pot in the £3 million-plus bracket was found to be just over £6 million – meaning some savers are likely to be sitting on significantly bigger sums.

What is an Isa?

Isa stands for Individual Savings Account which offers tax-free interest payments, so you could get more for your money

Currently an Isa allowance stands at £20,000, and it is kept from the taxman as long as it stays in that account.

According to InvestingReviews.co.uk investors starting from scratch now could expect to reach millionaires’ row in around 22 years by making maximum use of their annual allowance, assuming a compounded 7% annual return.

Isa season, when providers launch a range of new deals, traditionally takes place in the run-up to the next tax year (April 6).

Simon Jones, chief executive of InvestingReviews.co.uk, said: “As Isa season takes off, this data will focus minds on what can be achieved through patient investing.

“Hats off to all those canny investors who have grown their pots to £6 million-plus.

“They will be raking in almost half a million pounds a year in tax-free cash, while anyone who did so without the Isa wrapper will be getting a spanking from the taxman.”