First Direct is urging British people to save £467 million a year in tax by taking out a tax-free savings account such as an ISA.
According to research by the bank, an estimated 30 million savers in the UK are only holding 4.8 million tax-free savings accounts - just 16 per cent of all savings plans.
That means that British savers are handing more than £467 million a year over to the taxman - they might as well burn their money as put it in a savings account.
"No one likes to pay the taxman more than they need, yet 83 per cent of savings accounts are still not held tax efficiently," said Richard Kimber, chief executive of First Direct.
Interest is earned free on an ISA - meaning that switching to one from a standard savings account could see your interest payments spiral by up to 310 per cent. Click here to find out more about cash ISAs.
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