Brits fail to take advantage of stocks and shares ISAs

Less than ten per cent of Brits are taking advantage of the savings rates offered by tax-free stocks and shares ISAs.

The Fair Investment Company is urging the 90 per cent of taxpayers who don't make the most of their full ISA allowance to act quickly before time runs out on this year's allowance period.

Julie Smith, savings analyst at Fair Investment Company, said that almost 40 per cent of taxpayers are taking advantage of cash ISAs but many refuse to take out a stocks and shares ISA.

She added that savers are wasting a lot of money on unnecessary tax payments by not taking advantage of the full £10,200 stocks and shares allowance.

"It's great that 40 per cent of people are using their cash allowance, but to take full advantage of ISAs, they should be looking at using the stocks and shares portion too," she explained.

The average amount invested into a stocks and shares ISAs in 2009/10 was just £4,155, which equates to 58 per cent of the previous allowance of £7,200.
 

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2011-02-24 16:16:47 © Moneyextra.com