Nationwide discovers many Brits are not saving

Three in ten Brits are not saving any money at all, research conducted by Nationwide has indicated.

According to the study, less than half of Brits are using their Isas while one in six have no idea what such accounts are.

And half of all consumers are unaware that the current annual Isa allowance is being extended at the end of the tax year.

Guy Simmonds, Nationwide's marketing controller for investments, said people are clearly not making the most of their tax-free savings allowance.

He claimed there could be "a whole host of reasons" why some people are choosing to spend all their income, including a lack of finance and a lack of trust in the banks.

"Even saving just £50-£100 a month will build up into a nice nest egg over time," Mr Simmonds added.

Earlier this week, research conducted by Clydesdale and Yorkshire Banks indicated that 1.5 million savers could miss out on their 2009-10 Isa allowance by leaving it too late to visit the bank.

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2010-03-24 14:48:27 © Moneyextra.com