Tax-exempt savings schemes remain popular even 15 years after the introduction of the tax-exempt special savings account (Tessa) in 1991.
This savings account was designed for those wanting to save up to £9,000 over half a decade in a risk-free way, while not having to pay tax on the savings interest earned.
Launched by John Major, the Tessa was followed by the launch of the personal equity plan (PEP) and individual savings account (ISA) by the Labour government in 1999.
"The popularity of tax-exempt savings schemes … is illustrated by the fact that by the end of 2005, holdings of cash ISAs had passed the £110 billion mark," comments Richard Kimber, the chief executive of first direct.
He adds that there is "widespread agreement" that Britons need to be saving more, especially towards their retirement pensions.
"Tax-free savings have been a hit with savvy savers, but too many people are still missing out," Mr Kimber continues.
"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."
Saving money tax-free still popular, says first direct
Saving money tax-free still popular, says first direct
Thu, 26 Jan 2006
Recommended links
Interest rate warning for those saving moneyStart saving money for next Christmas now
West Brom urges parents to start saving money
BSA: Saving money in Child Trust Funds down
Record year predicted for those saving money in ISAs
<% Randomize: ord=int(rnd*1000000000) %>
 %>?)
| savings news |
|---|
| Skipton BS launches new savings bonds - Mon, 05 Jan 2009 |
| People make savings resolutions - Fri, 02 Jan 2009 |
| Nationwide BS to cut savings rates - Wed, 31 Dec 2008 |
| More News |
