NSI help investors save £116m in tax
28 July 2004
National Savings and Investments has applauded savers who over the last year have saved more than £100 million in tax by depositing their money in tax-free Savings Certificates.
If these investors' saving had been liable to tax, they would have paid in the region of £116 million between April 2003 and April 2004.
These savings represented all tax-free investments held in Index-linked Savings Certificates and Fixed Interest Savings Certificates.
NS&I's marketing director, Gill Cattanach, said: "Savings Certificates offer an excellent opportunity for people to maximise their savings by protecting their hard-earned money against the effects of tax and inflation."
National Savings and Investments research found that Britons remain largely unaware of the effects of inflation and tax on their savings: apparently only one in four people (27 per cent) take the rate of inflation into account when choosing a home for their money.
"The interest rates on Savings Certificates look especially competitive at the moment, both for higher rate and basic rate taxpayers," added Karen Ritchie, an independent financial adviser for Finance4Women.
She continued: "Additionally, they offer complete capital security because they're backed by the Treasury. This means you can tie up your money for a number of years knowing it's going to be safe and, at the end of the investment term, you'll see a healthy return."
Regionally speaking, people in the South East avoided the largest tax bill as they could have been shelling out £21.6 million in tax.
Second and third place fell to Londoners and those in the East of the country, having saved £18.3 million and £12 million respectively.
Anyone over the age of seven can invest between £100 and £15,000 in each Issue of Savings Certificates and they are not required to declare them to the Inland Revenue.