New ISA allowance: Brits to waste £25million a day Go compare with our comparison table

New ISA allowance: Brits to waste £25million a day

06 April 2010 / by Rebecca Sargent

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.

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 Product NameISA OptionIncome YieldMore Info
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', 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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', eventAction: 'Account', eventLabel: 'Invesco Perpetual Corporate Bond' });">Invesco Perpetual Corporate Bond ISAyes
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', eventAction: 'Account', eventLabel: 'Artemis Income ISA' });">Artemis Income ISAyes
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', eventAction: 'Account', eventLabel: 'Jupiter Corporate Bond' });">Jupiter Corporate Bond Fund ISAyes
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', 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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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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