ISA savers risk losing their allowance through inertia Go compare with our comparison table

ISA savers risk losing their allowance through inertia

23 March 2010 / by Andy Davies

More than a million savers could miss out on this year's ISA allowance if they leave investing until the last minute, Clydesdale and Yorkshire Banks have claimed.

With the Easter weekend coinciding with the end of the current tax year, the two banks are warning savers that there are two fewer days in which to get their deposits and transfer requests to ISA providers before the 5 April deadline.

According to Clydesdale and Yorkshire, up to 1.5 million savers could lose their ISA entitlement for this tax year by waiting until deadline day to make an investment.

Research by the two banks has estimated that as many as one in ten savers do not invest in an ISA until the last two days before the deadline – the equivalent of £4billion worth of investments.

Currently, over 50s can invest up to £10,200 in a tax-efficient ISA, while all other eligible savers can invest a maximum of £7,200.

Commenting, Steve Reid, retail director at Clydesdale Bank, has urged savers not to delay and open ISA before it is too late.

"The ISA allowance isn't flexible, so beat the deadline and pay less tax," he said.

© Fair Investment Company Ltd


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