New research from Nationwide Building Society has revealed that 48% of individual savings account holders intending to save more in their ISA when the revised limits come into effect in April, 2008.
The research found that 28% of individual savings account (ISA) holders do not have any money to save with 4% not knowing how much they topped; nearly one third of ISA holders saved up to GBP1,000 in their ISAs; similarly, one tenth of ISA holders saved between GBP1,000 and GBP2,000; one fifth of ISA holders topped up between GBP2,000 and GBP3,000 and just 8% of ISA holders topped up their stocks and shares ISAs by more than GBP3,000.
When asked what stops people from saving more in their ISAs, more than half of the respondents stated that they would like to save more but do not have the money to do so. Conversely, 10% of people do not want to save any more, suggesting they feel they save enough.
Additionally, another 9% of respondents do not save any more into their ISA, as they ‘prefer to keep their savings in an instant access account’, despite the fact that all ISAs are instant access.
Matthew Carter, director for savings business at Nationwide, said: With one in 10 ISA holders opting to save in a regular savings account instead of their ISA, it’s essential that consumers are educated about the benefits of tax-efficient savings and how most ISAs allow instant withdrawals.