Abbey savings warning: Check the name on the account

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Abbey savings warning: Check the name on the account

Thu 2nd Apr 2009

Abbey has warned that couples who hold Isas could be paying too much tax due to the name on the account.

According to figures compiled by the provider, 11 per cent of British couples who save in Isas keep the majority of their funds in an account under the name of the of the partner who pays the most income tax.

Furthermore, another 17 per cent are paying into joint accounts, despite one of the partners being a lower or nil rate payer.

For example, on savings of £10,000 attracting three per cent interest a year, couples could be losing out on £120 annually.

"We can all be bamboozled by rules and regulations - and tax is certainly no exception - but a basic knowledge of which tax band you and your partner fall into will mean you can distribute your savings accordingly," said Reza Attar-Zadeh, director of savings and investments at Abbey.

Other research by Abbey recently found that by cutting back on spending, Britons are saving an average of £1,746 a year.

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