The second half of the financial year sees a huge drop in the number of ISAs opened, compared to the first half, research from Abbey Savings has shown.
Abbey has found that only 29% of ISAs are opened in the latter half, whereas other forms of savings accounts are more consistent, with 46.6% opened in the same time period.
This means that people are not using their tax-free savings allowance, by opening regular savings accounts instead of ISAs, which Abbey puts down to a reduce in ISA advertising and press attention as the year progresses.
April shows the biggest surge of ISAs being opened, when advertising and enthusiasm for ISAs is at its highest, closely followed by March, when people try to cash in on their tax-free savings allowance before the financial year ends and the cycle begins again.
Alexia Kilby, Head of Savings at Abbey, said: “The concept of an ISA season has obscured a simple fact – you can take advantage of your ISA allowance at any time of the year. We would urge savers to ensure they use their ISA allowance to minimise their tax bill.”
An ISA is an Individual Savings Account, which allows you to save money that is exempt from tax. Savers can put up to £7,000 in an ISA in one tax year (6th April – 5th April next year), which can be made up of either cash (up to £3,000), stocks and shares, or a combination of both.
Compare ISA deals
and maximise your savings