subject: Study Reveals Lack Of Isa Awareness [print this page] Many people lack awareness when it comes to placing money into individual savings accounts.
A significant number of Britons may not be making the most of their money when it comes to saving.
In research carried out by National Savings and Investment (NS&I), only a sixth (15 per cent) of people claim to be fully aware of the forthcoming changes to be made to individual savings accounts (ISAs).
From the beginning of the new tax year the total allowance on such vehicles will rise to 10,200 for all adults, however 25 per cent of people believe that the savings accounts will stay at their current rate.
And while those over the age of 50 can currently save this amount of money, one out of ten believe that this will continue to be in place in the 2010-11 fiscal year.
The report goes on to indicate that 29 per cent of consumers claim they are not planning on making the most of their tax-free saving allowance as they believe they cannot afford to do so, with 35 per cent stating that low interest rates have put them off from tucking money away.
"Understanding the allowances and reviewing the terms of the product is vital for savers. With less than two months to go until the end of the tax year, there is no time like the present for everyone to check their finances and plan to benefit from tax-free savings," John Prout, sales director for NS&I, states.
He adds the fact that all interest built up in such a UK account is tax-efficient means that it is "a must-have product for people looking to maximise their hard earned savings".
Comments from the saving expert follow a recent Halifax study which revealed some 169.5 million was placed into these tax-free accounts over the course of 2009.
More than one in three (37 per cent) households are currently in possession of such an account.
