Nationwide Savings urges Brits to 'use it or lose it'

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Nationwide Savings urges Brits to 'use it or lose it'

Wed 5th Mar 2008

With only a month to go before the tax year ends, Nationwide is urging savers to use their yearly individual savings account (Isa) allowance before time runs out on April 5th.

It estimates that Brits who fail to use their full allowance could be paying a total of more that £225 million in extra tax.

Only a third of the UK population currently has an Isa account, meaning the rest are missing out on tax-efficient returns on their savings.

In addition, many people fail to top up their accounts each year, which Nationwide has calculated could cost mini cash Isa holders around £9 billion and maxi Isa holders approximately £5.5 billion.

It has worked out that if those who do not currently hold an Isa have a balance of £3,000 in a non-Isa savings account paying a rate of 5.25 per cent, a further £1 billion in unnecessary taxes would go to the Treasury this year.

Matthew Carter, Nationwide's savings director, said: "With only a month remaining in the current tax year, people should make sure they are taking advantage of the tax-efficient savings on offer by using all of this year's Isa allowance."

Currently savers can invest up to £7,000 in Isa accounts each tax year, which can be in one maxi Isa or two mini Isas.

In other news, Nationwide announced earlier today that its Consumer Confidence Index fell by three points in February.

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