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

Two-thirds of UK adults unaware of new savings rules

0
Written by:
29/09/2015
The majority of British adults are in the dark about upcoming changes to the UK’s savings regime, new research has found.

A study by Aldermore revealed that seven out of ten people do not know about the new personal savings allowance (PSA), launching in April 2016, which will mean basic-rate tax payers won’t have to pay tax on the first £1,000 of interest they earn on their savings in a financial year. Higher rate taxpayers will be able to earn £500 of interest tax-free.

The survey of 2,000 adults also found that two-thirds (67%) do not know the Government will be supporting first time buyers through the introduction of the Help to Buy ISA from December.

A further two-thirds (66%) are unaware of the new rules from April 2016 allowing savers to top up their ISAs during the tax year if they have previously withdrawn cash and more than six in ten (63%) aren’t aware the Financial Services Compensation Scheme deposit protection limit is being reduced from £85,000 to £75,000 from 1 January 2016.

Simon Healy, managing director for savings at Aldermore, said: “Our research shows that a worrying majority are not aware of the forthcoming changes that could impact their savings habits. With the introduction of the personal savings allowance, for example, many savers could be better off looking at traditional savings accounts rather than an ISA. Choosing a competitive rate is important, but it is important savers have an understanding of the new types of products as well as changes to the tax system or deposit protection scheme.”

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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...

Money Tips of the Week

Read previous post:
Car insurance costs rise for everyone – except under-25s

Car insurance premiums are racing ahead in cost but under-25s are avoiding the price rises, according to figures.

Close