Savers 'penalising themselves' by not using Isas

Savers who fail to use their Isa allowance are effectively giving money to the taxman, according to one financial commentator.

David Kuo, director of the financial website Fool.co.uk, said consumers should act quickly to take advantage of their tax-free allowance for 2009-10 ahead of the April 5th deadline.

He stated: "If you have some money you want to put into an account - no matter how much - if you haven't opened or used up your Isa then get a move on.

"The amount you put in is not relevant. Otherwise you are just penalising yourself."

Mr Kuo added that the savings interest rates offered by Isas are also attractive, as finding an ordinary account to pay more than the level of inflation "will be as hard as finding hens' teeth" at the moment.

Consumers aged under 50 can place £7,200 in Isa accounts during this tax year, with over-50s benefiting from a £10,200 allowance.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-03-09 13:15:34 © Moneyextra.com