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Savers urged to use ISA allowance

Savers urged to use ISA allowance

Category: Savings

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

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 It is now over 6 months old so the content may be out of date.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

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