Mar 11 2008
Savers in Briton are not making the most of individual savings accounts (Isas), it has been claimed.
According to recent research from Alliance & Leicester, 52 per cent of consumers will leave their savings in a current account rather than a higher interest vehicle and six per cent will even leave their savings as cash.
Furthermore, while 80 per cent of savers identify a good rate of interest as one of the key factors when choosing an account, 58 per cent did not rank tax efficiency as one of the most important characteristics.
Ewan Edwards, head of savings at Alliance & Leicester, said: "People still are not getting all the benefits they could from their savings, with only half of those with savings getting the extra benefits that come with sheltering their savings in an Isa."
He added that it was concerning that many people believe it is necessary to invest a lump sum to start an Isa, such as a children's Isa, while the accounts can in fact be started with £1.
Earlier this week, the Share Centre announced a 60 per cent rise in the number of Isas opened in January and February this year.
