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Time running out to use 2011/12 ISA allowance

Time running out to use 2011/12 ISA allowance

Category: Savings

Updated: 12/04/2012
First Published: 19/03/2012

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 It is now over 6 months old so the content may be out of date.

Time is running out for savers to maximise their ISA allowance for the 2011/12 financial year.

People have less than three weeks to make the most of the annual isa limit, with the 2012/13 tax year kicking off on April 5th.

Savers can squirrel away £5,340 in the 2011/12 year, but research by Lloyds TSB has found that more than half (55%) are failing to make the most of the entitlement.

Of those savers yet to top up their cash ISA, a further five out of six (85%) believe that it is unlikely they will utilise their full allowance.

Around one in four respondents (23%) are not aware of what tax-free cash ISA allowance they have. This may explain why only half of savers (51%) are using a cash ISA, and only one in ten (10%) hold a stocks and shares ISA.

By contrast, over two thirds (71%) are saving in a standard savings account.

Recent figures suggest that UK savers are missing out millions of pounds in interest as a result of not using their full £5,340 cash ISA allowance.

"It is clear that consumers are not making the most of their tax free savings," said Greg Coughlan, head of savings at Lloyds TSB.

"At a time when spending is being squeezed, and many consumers feel that they cannot afford to save, it has never been more important that every penny which is squirreled away in savings is working as hard as it can.

"Tax free ISA accounts should always be the first port of call for anyone looking to save."

If you haven't yet used any of your allowance this year, or you want to search for a new cash ISA for your 2012/13 allowance, be sure to compare cash isa rates at Moneyfacts ISA Best Buy tables.

Looking to transfer an ISA - Compare best isa rates for transfers

Request a FREE ISA Savings 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 Any products featured may be withdrawn by their provider or changed at any time.

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