According to IFA Promotion, a body that promotes independent financial advice to consumers, investors not using their annual ISA allowances have lost £110m.
IFA Promotion said that according to their research, 11.3 million people had money in a savings account or a deposit account but no ISA.
Our View:
If you are a taxpayer, you should at least have a Mini Cash ISA. The interest rates available at the moment are around 4% and that interest is free of tax. Any other bank savings or deposit account held by a taxpayer will have 20% tax deducted from the interest, before it is given to you.
Cash ISAs make sense from a tax point of view, are very easy to operate, have no hidden catches or charges and save you tax!