Building societies have reported a drop of almost 50 per cent in monthly cash Isa savings, from £67 million in November 2005 to £35 million last month, sparking fears that homeowners are struggling to save.
The November figure is the second-lowest in four years, prompting experts to assert that higher interest rates paradoxically could be causing a decline in savings.
Justin Modray, of Bestinvest, the financial adviser, said: "It seems paradoxical, because higher rates should encourage people to save more. Instead, the flipside of higher borrowing costs is that homeowners have less cash to put aside.
"Today's figures indicate if not a recession, then at least that we are facing more difficult times."
The Building Societies Association (BSA) was unable to account for the fall.
Adrian Coles, the director-general of the BSA, said: "Savings going into Isas are seasonal and are always low at this time of year.
"November's figure is the second-lowest in the last four years; the reasons for this are unclear."
The amount deposited last month in cash Isas from banks as well as building societies, calculated by the Bank of England, is yet to be announced.
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