(PRWEB) April 1, 2010
Thousands of consumers will lose out on cash ISA allowances this tax year, missing out on strong interest rates which are up to six times higher than base rate. New research from Barclays shows that 56 per cent of consumers will not open an ISA in the current tax year, but will leave more than £4,000 sitting in instant savings/and or a current account.
The research looked at intentions to invest into ISAs in the current and new tax year comparing this against their current level of instant savings. It revealed:
- 71 per cent of people don't think they have the money to invest, despite having thousands of pounds sitting on instant access
- 13 per cent didn't understand what an ISA was
- 11 per cent are under the impression that their money would be tied up
- 46 per cent of people have never invested money into an ISA before
- 4 years is the average time money has been in an instant access account
However, of the people who have or intend to open an ISA in the current tax year, 37 per cent have already opened, and a further seven per cent will open. The average amount they have or will pay into an ISA is around £2,500. The key reasons given for opening an ISA were 77 per cent of people want to make the most of their tax free allowances and 39 per cent stated they pay a better interest rate than their other accounts. Looking to the new tax year just under a third of people intend to open one.
Andy Gray, head of savings for Barclays said: "It's concerning to see that so many people don’t understand ISAs and will lose out on their tax free allowance. Many ISAs are as flexible as an instant access savings account and our new ISA paying 3.10 per cent gives customers total flexibility, as they can have access to their savings as and when they need to. We would strongly recommend that they make the most of their ISA tax free allowance as the end of the tax year approaches."
Regional figures reveal that consumers in Yorkshire are the most likely to lose out, 61 per cent don’t intend to open an ISA despite having more than £4,800 sitting in an instant savings or current account, with 8 in 10 thinking they don’t have enough money to do so.
Barclays Golden ISA - Issue 2 pays a great rate of 3.10 per cent AER / 3.06 per cent gross, it includes a one per cent fixed gross bonus for 12 months. Excluding the bonus, the core rate is a credible 2.08 per cent AER / 2.06 per cent gross. Transfers in cannot be made from an existing ISA. This cash ISA provides customers with flexibility as they can either put the full tax ISA allowance away in one go, or save regularly over the course of the tax year. It's simple and transparent with no additional purchase conditions, and instant access to your savings whenever you need.
Notes to editors:
Opinion Matters questions 1000 people between 4 and 7 March 2010.
Barclays is a major global financial services provider engaged in retail banking (current accounts and savings accounts), credit cards, corporate banking, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, invests and protects money and provides personal loans, home insurance, life insurance and other services for over 49 million customers and clients worldwide. For further information about Barclays, please visit our website http://www.barclays.co.uk.
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