People should make full use of their annual individual savings account (Isa) allowance, according to one expert.
Rachel Le Brocq, a spokesperson for the Building Societies Association (BSA), explained that as the savings accounts are tax free, they offer several benefits.
She said: "It gives you the flexibility of the choice and it's a very tax efficient way of saving, so you earn more interest on your money ."
Cash Isas have recently become more popular as people are less certain about the success of other forms of investments such as the stock market, in light of recently economic instability, Ms Le Brocq added.
This is a trend that could continue in the long term as people become less keen to borrow and more conscious that they should be putting something away for the future, she stated.
According to research by Moneyfacts.co.uk, building societies currently account for over 38 per cent of all cash Isa deposits.
It also found that 36 of the top 50 Isas are offered by mutual institutions .
Consumers urged to make use of tax free savings
Consumers urged to make use of tax free savings
Tue, 05 Aug 2008
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