Savers urged to use ISA allowance - Savings - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Savers urged to use ISA allowance

Savers urged to use ISA allowance

Category: Savings

Updated: 15/03/2012
First Published: 18/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

As the Individual Savings Account (ISA) gets ready to celebrate its tenth birthday on 6 April, savers have been told to make more of their tax free isa savings allowance.

Less than a quarter (23%) of savers have so far used their isa allowance, according to Halifax.

Even though a further one in ten (11%) have said they'll use their isa limit before the April deadline, it still means two thirds (66%) of British savers will miss the opportunity to save tax free in the current tax year.

Incredibly, savers who have invested the maximum amount possible in tax free savings since ISA's were introduced in 1999 will, on average, have received double the amount of interest than a saver who put the same balance into a typical notice account over the same period.

"The isa has proved to be a very popular savings vehicle since its introduction almost ten years ago, but it is worrying that savers still aren't making the most of their isa limit each year," said Flavia Palacios Umana, head of savings products.

Find the best savings accounts for you - Compare cash ISAs

Download our free Beginner's Guide to ISAs to find out how to use your 2011/12 ISA allowance. You will need a PDF reader such as Adobe Reader to download this guide.

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 Any products featured may be withdrawn by their provider or changed at any time.

Close