Financial experts Intelligent Finance and Alliance and Leicester Savings have revealed the benefits to be enjoyed by those investing in tax-free ISA accounts.
Research by Intelligent Finance has revealed that millions of UK residents are wasting at least 22 per cent of their savings in tax by not opening a tax-free ISA.
This attitude could see £74 million go to the taxman instead of towards the future of the saver this year alone.
By opening a cash ISA, a higher rate taxpayer could save £3,848.14 in tax over ten years, £17,663.10 over 20 years and £47,712.95 over 30 years.
Despite this clear benefits, Intelligent Finance's statistics show that 47 per cent of those with more than £2,000 in savings have no plans to put any of their money in an ISA.
Alliance and Leicester Savings' own research also reveals that two in three of the 54 per cent of the adult population who do have an ISA haven't invested any money yet this year.
Of those who have invested, the average amount saved is just £871.21, which is £6,128.79 short of the total annual tax-free allowance.
"ISAs are a great way to save, you don't get taxed on your savings interest, they pay very competitive rates and many allow instant access to cash," noted Nick Robinson, managing director, Intelligent Finance.
Alliance & Leicester's Nathan Barber Kebby added: "With the choice of investing in cash or stocks and shares, there is no reason why people should miss out on their annual tax-free allowance.
"For many, mini cash ISAs offer attractive interest rates and safety for their capital, while a stocks and shares ISA could offer higher growth potential over the longer term."Click here to find the best ISA for you.
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