The majority of Britons are missing out on tax advantages offered by maxi individual savings accounts (ISAs), research suggests.
Life and pensions company Friends Provident revealed that despite the fact that 71 per cent of Britons believe ISAs are tax efficient, 87 per cent have not taken advantage of the benefit of maxi ISAs in the current financial year.
In total, six in ten Britons are without any ISA, while those aged between 19 and 25 or older than 55 seem to be the least likely to use these savings accounts as a means of saving tax.
The study, which was conducted by research company 72 Point, further said that men have a clearer understanding about tax-free limits offered by ISAs than women.
Men were also found to be more inclined to consulting a financial adviser than women are, while a quarter of women admitted they rely on a partner or spouse when making financial decisions.
Christine Foyster, head of investment marketing at Friends Provident, says people should not only be saving money for a rainy day, but they should also ensure that they make the most of their savings.
"Investing in a maxi ISA will allow you to save £7,000 tax-free every year and has the potential to earn far better returns than deposit accounts over the medium to long term," she explains.
This research echoes comments made last month by Richard Kimber, the chief executive of internet bank first direct.
He said: "Tax-free savings have been a hit with savvy savers, but too many people are still missing out.
"Amazingly, although more than 29 million people in the UK have some savings, just 16 per cent of accounts are held tax efficiently within an ISA."
Savings account tax benefits missed, survey shows
Financial Services > Savings > Savings and Investments News
Savings account tax benefits missed, survey shows
Wed, 15 Feb 2006
Recommended links
Mini cash individual savings account launchedSaving money tax-free still popular, says first direct
Compare deals for Maxi ISAs from UK Providers
Compare tax-free saving accounts
| savings news |
|---|
| ISA benefits for those with long-term view, says expert - Mon, 08 Feb 2010 |
| Base rate decision is detrimental to savers, says Defaqto - Fri, 05 Feb 2010 |
| Finance adviser warns of the cost of falling interest rates - Wed, 03 Feb 2010 |
| More News |
