You are here: Home - Saving & Banking - News -

ISA holders failing to capitalise

Written by:

Research from Nationwide Building Society reveals that ISA holders are not making full use of their tax-efficient allowance.

In the current tax year, 28% of ISA holders do not have any more money to save with 4% not knowing how much they topped up.

Nearly one third of ISA holders saved up to £1,000 and one tenth of ISA holders saved between £1,000 and £2,000. One-fifth of ISA holders topped up between £2,000 and £3,000.

Just 8% of ISA holders topped up their stocks and shares ISAs by more than £3,000.
When asked what stops people from saving more in their ISAs, more than half of respondents stated they would like to save more but do not have the money to do so.

Conversely, 10% of people do not want to save any more, suggesting they feel they save enough. Additionally, another 9% of respondents do not save any more into their ISA, as they prefer to keep their savings in an instant access account, despite the fact that all ISAs are instant access.

With 48% of ISA holders intending to save more in their ISA when the revised limits come into effect in April, Nationwide believes more needs to be done to engage savers and would-be ISA holders to ensure they fully understand the benefits of ISAs.

Matthew Carter, director for savings at Nationwide, said: “With just over a week to go before the new ISA limits come into force, work needs to be done to encourage people to make the most of their ISA allowance. With one-in-10 ISA holders opting to save in a regular savings account instead of their ISA, it’s essential that consumers are educated about the benefits of tax-efficient savings and how most ISAs allow instant withdrawals.

“Nationwide calls on all would-be savers to make use of their ISA allowance – with only a week to go until the end of the tax year, now is the perfect time to start saving.”


Related Posts


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • ‘Alarming’ rise in number of young fraud victims by @yourmoneyuk
  • RT @RCIBank: Generation Sensible is the new millennial, with 68% saving money each month by choosing @NetflixUK over nights out . #Celebrat
  • RT @Rob63y: They’re currently doing the same to me 😡😡 happy to take the premium £4500 over the last 2.5 years now twisting moratorium to th…
Read previous post:
Brits fearing for their finances

A Budget survey by found 30% of Brits don’t think they can cope much longer financially.