Lloyds TSB Isa research reveals customer confusion

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www.moneynews.co.uk > Finance Features > Lloyds TSB Isa research reveals customer confusion

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Lloyds TSB Isa research reveals customer confusion

Richard Davies, senior savings manager from Lloyds TSB, commented: "It is obvious that there is some confusion surrounding the increase in cash Isa limits."

When the allowance is increased to £10,200, unbiased.co.uk has predicted that £35 million will be given to the taxman, in addition to the tax already deducted from income.

It has therefore been made clear by industry experts for customers to save with a tax-efficient account before the deadline falls, but reports revealing consumers' confusion about the savings method have prompted officials to recommend IFAs.

Karen Barrett, chief executive of unbiased.co.uk, commented: "It is more crucial than ever for consumers to make sure their savings are working hard for them."

Allowances will increase from £7,200 to £10,200, although the saving limit for over-50s already stands at £10,200.

In the Budget speech last week, Alistair Darling announced the limit will rise annually with inflation, while the base rate level of 0.5 per cent continues into a 12th consecutive month.

However, broker Willis Owen has claimed that this measure will add to the confusion, as customers try to adjust to the process of changing their monthly direct debit payments to suit the increases.

According to a recent survey by Lloyds TSB, just a tenth of people actually knew what the current Isa limits were and only nine per cent of people realised the limits would increase after April 5th.

Furthermore, the research showed that less than 50 per cent understood what Isa stood for and six per cent of 18 to 24-year-olds believed it was an iPhone application.
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