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Consumers need to be encouraged to use Isas say financial experts

March 26, 2008 by admin  
Filed under News, News-Banking

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More needs to be done to encourage savers to put their money into individual savings accounts (Isas) by showing them the benefits of the products, one financial expert has claimed.

Findings from research from Nationwide revealed that one in ten savers topped up their Isa by more than £3,000 while only 8 per cent of Isa holders increased their limit by over £3,000.

Up to half of those questioned in a recent survey said they would like to save more money in Isas but do not have the funds to do so.

Matthew Carter, director for savings at Nationwide, said that with just over a week to go before the new Isa limits come into force, more needs to be done to encourage people to take advantage of their Isa allowance.

“With one in ten 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,” he added.

The deadline for submitting an application for an Isa is April 5th.

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