Isa benefits are ignored by consumers
A combination of £13 billion has been wasted by UK consumers failing to take advantage of individual savings accounts Isas.
This information comes from new research conducted by Clydesdale & Yorkshire Banks. They found that savers have only put one-sixth of what they could have into Isas since their beginning in 1999.
Because of this, many savers have unnecessarily been paying tax on their cash stores, since other savings and investments face charges being levied.
Retail director for Clydesdale Bank, Steve Reid, said Isas should be the basis of any taxpayer’s savings portfolio. “By not taking advantage of these tax-free accounts, UK savers have potentially lost billions of pounds in tax they need not have incurred,” he commented.
“Even if every taxpayer only used their full cash allowance from April 5th, the total saved in Isas would rise next year by 45 per cent, meaning they paid almost a billion pounds less in tax.”
Last week, the Children’s Mutual urged young parents to save for the future of their offspring.