MAJORITY MISSING OUT ON CASH ISA BENEFITS
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| Article date: 10/10/2005 : 13:18:14 |
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A report has warned British taxpayers that they are potentially missing out on billions of pounds of tax free savings by not having a cash ISA.
Research from the Portman Building Society shows the 89 per cent of taxpayers without an ISA are passing up as much as £3.8 billion in tax free interest, based on the best buy rate of a mini cash ISA, of five per cent.
As there are 30.5 million UK taxpayers this means an incredible 25.33 million people could potentially improve their financial situation in the future.
Helen Shaw, group communications manager for Portman Building Society said: "With six months to go until the end of the tax year it is shocking that almost 90 per cent of people have not yet taken out an ISA to make the most of their tax free savings allowance."
The report has figures from Moneyfacts that demonstrate the difference in interest between a mini cash ISA and the average rate for instant access savings accounts.
The mini cash ISA has a five per cent best buy rate for both basic and higher rate taxpayers, whereas the instant access savings accounts rates are 2.02 per cent for the basic rate taxpayer and 1.52 per cent for the higher rate taxpayer.
Ms Shaw also mentioned that cash ISAs are an easy and useful method to save money and she said the money saved from getting one would be "better in your pocket than the chancellor's".
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