Savers not taking full advantage of Isas

Up to one in three savers are not taking advantage of their tax-free allowance with their individual savings accounts, according to new research.

Findings from Marks and Spencers Money shows that by not saving the maximum of £3,000 in current and previous tax years, savers could have lost out on £35 per head in tax free interest.

The firm said that this means savers could have lost a potential £23 million per year.

Brendan Cook, chief executive of M&S Money, said: “With an estimated 2million new Cash Isas to be opened in the current tax year, savers could be losing out on a huge amount of tax free interest.”

He urged savers to “take more interest in their savings”, and make full use of their Isa allowance, especially when the allowance increases from April 6th.

Last week, Adrian Lowcock of Bestinvest said that one way to get good value on an Isa was to search for a broker who only took a low rate of commission.

Tags: ISAs, individual savings accounts, tax, April, Marks, Brendan Cook, value, Last week