Put your cigarettes in an ISA, says Yorkshire Bank

04 March 2005
Research by Yorkshire Bank has found that if Britain's estimated 12 million smokers all kicked the habit and placed the money left over into one of the bank's ISA savings accounts, that money could grow to £285 billion over ten years.

The survey, released ahead of National No Smoking Day on March 9th, reveals that each of those smokers could save around £21,500 over the same period.

Yorkshire Bank's calculations also extend to tax - the research shows that if a 20-a-day smoker were to stop smoking and save the money instead, he or she would save roughly £13,900 in tax on those packets of cigarettes.

If that money were put in a tax-free ISA, the same ex-smoker would save an additional £3,980 in tax - making a total tax saving of not much less than £20,000.

"As well as damaging your health, smoking really can hurt your wallet too!" said Tim Willis, head of financial planning at Yorkshire Bank.

"And the great thing is, if you give up, the equivalent money could be put straight into an ISA and you wouldn't even notice.

"After only a few years you could have saved up enough to buy yourself a real treat such as a dream holiday or even a new car."

Click here to find out more about investing in an ISA.
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