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Cash ISA investors to save billions this year

Cash ISA investors to save billions this year

Category: Savings

Updated: 16/04/2012
First Published: 16/04/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Cash ISA investors are planning to save tens of billions of pounds this year, taking advantage of their tax free allowances.

With the 2012/13 tax year beginning on 6 April, savers were given an ISA allowance of £5,640, with all interest out of the reach of the taxman.

And new research from the Post Office shows that cash ISA investors are planning to save an impressive £59 billion this year.

Over a third of UK adults (37%) are planning to save an average of £3,210 into a cash ISA for the 2012/2013 tax year, with one in eight (12%) intending to save the full allowance (£5,640).

In terms of how people plan to save, a third of cash ISA investors (34%) expect to save money into their ISA every month while a further third (34%) expect to put in a lump sum once a year.

"It is encouraging to see people taking advantage of the tax allowances available on savings, and if you are making the effort to put money aside, it is important to make it work as hard as possible for you," said Richard Norman, director of savings and investments for Post Office.

"Whether this means investing a lump sum or a little money into an ISA every month, it all helps people's hard earned cash go that extra bit further."

As is usual in the opening weeks of the new tax year, providers are battling to attract funds from cash ISA savers.

There are a number of highly competitive cash ISA rates currently up for grabs, with the best deals on the market all showcased in the Best Buy tables.

As many of the accounts can be opened online, you could get your 2012/13 saving underway in just a matter of minutes.

Looking for a Cash ISA - Compare cash isa rates and best isa rates for transfers

Download our free Beginner's Guide to ISAs to find out how to use your 2012/13 ISA allowance. You will need a PDF reader such as Adobe Reader to download this guide.

Request a FREE ISA Savings brochure now

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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