Consumers 'missing out on Isa benefits'

UK consumers have wasted a combined £13 billion by failing to take advantage of individual savings accounts Isas.

This is the major finding of new research conducted by Clydesdale & Yorkshire Banks, which found that savers have only put a sixth of what they could have done into Isas since their introduction in 1999.

As a result, the banks say many savers have unnecessarily been paying tax on their cash stores, since other savings and investments face charges being levied.

Steve Reid, retail director for Clydesdale Bank, said Isas should form the basis of any taxpayer's savings portfolio.

"By not taking advantage of these tax-free accounts, UK savers have potentially lost billions of pounds in tax they need not have incurred," he commented.

"Even if every taxpayer only used their full cash allowance from April 5th, the total saved in Isas would rise next year by 45 per cent, meaning they paid almost a billion pounds less in tax."

Last week, the Children's Mutual urged young parents to save for the future of their offspring.

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2010-02-22 13:39:51 © Moneyextra.com