Nationwide: Isa savers 'not using accounts fully'

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Nationwide: Isa savers 'not using accounts fully'

Tue 25th Mar 2008

Only one in ten savers have topped up their individual savings account (Isa) by more then £3,000 this tax year, according to new research from Nationwide.

It found that over half of respondents would liked to save more but did not have enough money to do so, while ten per cent feel they are currently putting away the right amount.

So far this tax year 30 per cent of Isa holders have saved up to £1,000 in the Isas, while ten per cent squirreled away between £1,000 and £2,000.

The building society also revealed that many people are still not aware that Isas are instant access, with nine per cent of those surveyed saying they would "prefer to keep their savings in an instant access account".

Matthew Carter, director for savings at Nationwide, said: "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."

Last week, the building society revealed that two-thirds of Britons still not do have an Isa account.

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