ISA allowance wasted by 83% of Brits Go compare with our comparison table

ISA allowance wasted by 83% of Brits

01 April 2010 / by Andy Davies

Less than two in 10 Brits are taking full advantage of their annual ISA allowance as the end of the current tax year approaches, Nationwide has claimed.

With the ISA deadline fast approaching on April 5th, the building society has revealed that the majority of Brits are failing to make use of their tax free savings allowance, with 56 per cent only using their cash ISA allowance to save.

In addition, despite being able to save up to £7,200 tax efficiently in an ISA, more than a quarter of Brits are wasting their full ISA allowance by saving nothing at all.

Meanwhile, although the current tax year is set to become the best performing year for stocks and shares ISAs since 1999, Nationwide's research has discovered that there is an air of confusion surrounding this type of ISA with 30 per cent of consumers admitting to either not knowing what they are or how to invest in them.

The confusion is not limited to stocks and shares as many Brits do not know how much they can save in a cash ISA, with only 17 per cent of over 50s correctly stating that their current allowance is £10,200, while just 15 per cent of under 50s knew that their full allowance was £7,200.

As the ISA allowance is set to be increased to £10,200 for all eligible savers from the start of the 2010/11 tax year, Nationwide is calling for a better understanding of ISAs to help consumers make more of their annual allowance.

Commenting, Andy Hutchinson, head of savings at Nationwide said: "There are very few opportunities in life to ‘beat the tax system' but saving or investing in an ISA allows you to do just that, which is why I believe every adult in the UK should consider having one. Unfortunately, our research shows that many consumers are not using an ISA of any kind and therefore losing out on the tax-efficient benefits ISAs offer."

"If you are interested in taking advantage of this year's ISA allowance, I encourage you to do so as soon as possible to avoid disappointment."

© Fair Investment Company Ltd

 

 Product NameISA OptionIncome YieldMore Info
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The Schroder Monthly High Income Fund aims to generate a high income, whilst not compromising capital, by investing in a diversified basket of fixed income securities. 100% Discount off Initial Charges.
', eventAction: 'Account', eventLabel: 'Invesco Perpetual Monthly Income Plus' });">Invesco Perpetual Monthly Income Plus Fund ISAyes
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Popular monthly income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. 100% discount on initial charges.
', eventAction: 'Account', eventLabel: 'Henderson Strategic Bond Fund' });">Henderson Strategic Bond Fundyes
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The aim of this fund is to deliver a quarterly income to investors by investing in higher yielding assets, which will include most types of fixed interest securities such as high yield bonds, investment grade bonds and government gilts, as well as having the ability to invest a proportion of the fund in equities. Income is paid to you quarterly.
', eventAction: 'Account', eventLabel: 'Schroders Income Maximiser' });">Schroders Income Maximiseryes
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The Schroder Income Maximiser Fund ISA aims to deliver a target income yield of 7% pa, also providing potential capital growth. Income is paid to you quarterly. 100% Discount off Initial Charges.
', eventAction: 'Account', eventLabel: 'Invesco Perpetual Corporate Bond' });">Invesco Perpetual Corporate Bond ISAyes
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This highly popular fund aims to achieve a high level of overall return with relative security to capital. Income Paid to you twice yearly. Up to 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Artemis Income ISA' });">Artemis Income ISAyes
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One of the leading UK Equity Income Funds. The Fund managers hunt out companies with strong free cash flow and solid balance sheets. Income is paid to you twice yearly. 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Jupiter Corporate Bond' });">Jupiter Corporate Bond Fund ISAyes
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The Jupiter Corporate Bond aims to achieve a high level of income with the opportunity for capital growth, through mainly investing in fixed interest securities. Income is paid to you twice yearly. 87.5% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'invesco perpetual high income' });">Invesco Perpetual High Income Fund ISAyes
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One of the UK's most popular income fund ISAs the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'MandG Corporate Bond' });">M&G Corporate Bond ISAyes
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The M&G Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Jupiter Merlin Income' });">Jupiter Merlin Income Portfolioyes
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', eventAction: 'Apply Now', eventLabel: 'Jupiter Merlin Income' });">More Info >
The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Fund Charge.
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†† Income payments are dependent upon the FTSE 100 Index.

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