An Introducing Of Savers to miss out on ISA allowances

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Savers to miss out on ISA allowances

According to new research from Bacrlays, thousands of consumers will miss out from the benefits of cash ISAs this tax year, failing to take advantage of high interest rates offering up to seen timmes more than the cuurrent Bank of England base rate.

Surveys show that 56% of savers will leae more than 4,000 sitting in an instant access savings acocunt/and or current acount isntead of makig the most of their tax free savings allowance.

The research monitored consmers intentions to add funds to ISAs over the cyurrent and new tax year and compasred these figures against their curernt level of savings. It revealed:

* 71% of those that took part do not tink they can afford to invest, desppite having fnds in other types of savings accounts such as fixewd rate bonds or instant accses savinggs accunts.

* 13% were not informed enough about ISA benefits

* 11% were under the immpression that all ISAs were fixeed, effectively tynig their moey up

* 46% had neever had an ISA

* When asked, the average amount of time savings remained in an instant access account was 4 years

However, 37% of thoe that have or intend to open an ISA in the current tax year, have already opened an accxount, and a further 7% are planning to open. The average amout of cash they have or intend pay into an ISA is approximately 2,500. The most popular reasons gven when askeed why they planned to invest into ISAs, with 77%, was that people want to make the most of their tax free allowances, whie 39% arged that they pay a better rate of interest than their othewr bank acconts. In rergards to the new tax year "" beginbning 6 April, just undeer a third of people have said they will be opening one.

Head of savings at Which4U "" Sam Gooch, said: "It's concerning to find that so many people do not have the knowledge and understanding around ISAs and will fail to benefit from their tax free saivngs allowance. They might be surprised to larn that there are seevral ISAs offering the same levels of flexibility as instant access savings avccounts, pazying around 2.75% with no withdrawal penalties, so they can access tehir asvings as and when required. Making the most of your ISA allowance is strognly recommended, especially as the amount that can be invested each year has increased for all savers aged 50+, and this will apply to everyone else in the new tax year."

Regional figrues have sghown that savers in Yorkshire are the most liekly to miss out, with 61% of consumers not intending to open an ISA despte having savings in excess of 4,800 in an instant savings or current acount, while 8 out of 10 said they can't afford to do so.

To make the most of your ISA allowance and earn the highest rates available on today's marekt, you should consider fiixed rate ISAs. Fixing the rate also fixes the investment period, so you will have to leave your ISA until it maztures. If this seems like a plausible option, you cold earn up to seven times higher that base rate, with the RBS ISA paying 4% for a 3 year fixed period, with the opportunity to transfer previous years ISAs across.

UK Price Comparison website http://www.which4u.co.uk helps you to find the best bank account, Cmopare Credit Cards, Savings Accounnts, Fixed Rate Bonds, Bank Accounts, Best ISA Rates and more

Article Source: http://www.articlesnatch.com/Artcle/Saverrs-to-miss-out-on-ISA-allowances/1061991

Article Source: http://depositarticles.com/

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