Delaying ISA investment in the new tax year could cost Brits £25million a day in lost interest payments, research from Clydesdale and Yorkshire Banks has revealed.
The new ISA allowance of £10,200 (£5,100 of which can be saved in cash) was rolled out today, but as just 15.1 per cent of Brits currently make full use of their annual ISA allowance, Clydesdale and Yorkshire Banks warn that Brits could miss out on millions.
Commenting on the findings, Ben Mitchell, senior product manager for savings at Clydesdale Bank said: "Cash ISAs are an ideal way to make the most of your savings and the new increased limit is an added incentive to benefit from this tax efficient way of saving.
"At Clydesdale and Yorkshire Banks we are focussed on supporting savers and we're encouraging savers not to delay and make the most of the new ISA allowance as soon as possible – every day they wait is costing them money."
Research from the banks also found that ISAs are still causing some confusion amongst savers, as a survey found that 89 per cent of Brits do not know the current tax free savings allowance they are entitled to.
The same survey also found that 22 per cent of Brits think that ISAs only encourage the wealthy to save, and 20 per cent were unaware that they could make small regular savings rather than one lump sum investment.
© Fair Investment Company Ltd