Almost half of UK adults are knowingly paying too much tax on savings and taking no action to prevent this, according to Britannia Building Society
Its new study reveals that 48 per cent of adults have never had an ISA (Individual Savings Account), which make savings tax-free. Even more worryingly, 30 per cent of respondents who did not have an ISA did not know what it was.
Group chief executive, Neville Richardson, said: "Our research reveals that there are many misconceptions about ISAs and people just don't understand how they work.”
People can open an ISA at any time of the year and with almost six months left until the start of the new financial year, customers still have time to benefit from this year’s tax-free allowance.
"It's a shame that many of those who are saving are unnecessarily being taxed twice - firstly on their income and then again on their savings,” said Mr Richardson.
“This means 48% of adults are financially worse off by missing out on tax-free returns on their savings," he added.
Find out more about ISA savings