New research this week from Lloyds TSB shows that less than a tenth (9%) of people know the new allowances for Individual Savings Accounts (ISAs), for the coming tax year.
In the 18-24 age group, a quarter (25%) of people do not know what an ISA is, and 6% believe an ISA is an application for their iPhone, rather than a tax-efficient savings account, according to Lloyds.
Only 11% of people know the current ISA allowances, one-fifth of people think that ISA stands for Instant Savings Account, and 10% of people think an ISA is an Investment Standards Agreement.
What are the ISA facts?
There are two kinds of ISAs, the cash ISA and the stocks and shares ISA.
ISA allowances are about to rise from their current level of £7,200, and as of 6th April 2010, anyone over 16 may invest up to £10,200 in ISAs in the next tax year.
This can be split, with half (£5,100) invested in a cash ISA and half in a stocks and shares ISA.
If you have no cash ISA, you can invest your whole ISA allowance of £10,200 in the stocks and shares ISA. However, the reverse is not true. You may not invest more than £5,100 in a cash ISA.
If you do not use up your ISA allowance, it cannot be carried forward into the following year.
This means that this year’s ISA savers, or those thinking of setting up an ISA account, have now just three weeks to avail of this year’s allowances, before they expire on April 6th.
Contact us now to make a financial enquiry about saving in ISAs or ring 0800 678 5929 now
