North East savers not making most of ISA allowances
Increasing numbers of individuals in the North East are missing out on getting the best returns on their money by delaying using their savings allowances.
Newcastle Building Society have reported that only 45 percent of customers began to put money into their ISA at the beginning of the tax year when their new allowance becomes available, while nearly 40 percent wait a few months before putting anything away.
Many customers were also confused by how much they could put into an ISA annually, with only 42 percent knowing the figure was £5,340.
The Bank of England base rate is set to remain low for the next months, so it is in the interests of savers to make the most of ISA provisions.
Steve Urwin, Sales and Marketing Executive at The Newcastle Building Society, says “It’s common knowledge that the rise in the cost of living over the last couple of years has made it more difficult for people to save as much of their income as they might like, but that also makes it even more important to get the best returns for what you can save.
“ISAs are one of the most tax efficient savings method available, and are clearly extremely popular, but the twin facts that significant numbers of savers are delaying making use of their annual allowance and don’t know exactly how much they’re able to save through an ISA would suggest people could be getting more from them.”