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Savings Survey Shows ISA Neglect
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(25-01-08) - A survey carried out by CreditChoices.co.uk suggests that many savers are not taking full advantage of the benefits that an ISA could afford them. writes Dan Drage dan.drage@consumerchoices.co.uk |
The ISA versus Savings survey, conducted throughout January 2008, showed that one in four respondents have a savings account but no ISA, thus denying themselves a potential £33 a year extra in tax free interest.
Over a third of respondents were yet to open ISA accounts, a move which could net them up to £160 a year in tax free interest should they apply for an ISA before April 2008.
A healthy number of respondents (88%) admitted to accumulating savings, either in a savings account, current account or ISA. 74% of these respondents already hold an ISA.
Of the ISA holders, 80% confessed to not having yet invested the maximum amount in their ISA.
12% of respondents have no savings at all.
Chris Eagle, Commercial Editor at CreditChoices, urges savers with an ISA to maximise their allowance:
‘If you have a savings account but no ISA, or similarly have an ISA that is yet to reach it’s limit, then you’re missing out on potentially significant tax free interest and financial gain.’
He continues:
‘By investing £3000 into an Alliance and Leicester (www.alliance-leicester.co.uk) ISA you could net a maximum £195 interest a year, versus £162 if you invest the same amount in an Ice Save (www.icesave.co.uk) savings account. For the 12% who don’t yet have a savings facility, these two options are a great place to start.’
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