Only 15pc of savers have used their full ISA allowance this year, according to figures released by Halifax.
This means 85pc of Halifax ISA customers still have the opportunity to deposit money into their account, before the start of the new tax year on 6th April.
A study administered by Scottish Widows has uncovered the fact that eight million Brits have no savings to their name, while a further fifteen million are making no effort to save at all.
Another blow has been dealt to UK savers as the ISA interest rate has fallen below 3pc for the first time since the accounts were launched in 1999.
Coventry Building Society dropped their interest rate from 3.1pc to 2.8pc, meaning there are now no ISA’s on the market that will pay over the 3pc mark in interest
You would be forgiven for thinking that giving up chocolate or quitting smoking would be the top of people’s New Year’s resolutions list; however an independent study has revealed that people are most concerned with reading more and saving money. These were the top two results in a poll administered to 2000 people by gym chain, LA fitness. 2012 was a year where people were made increasingly aware of the advantages of saving, as well as the possible consequences for those who were not able to save, or simply chose not to.
There have been fresh calls for the Government to consider allowing children who hold Child Trust Fund (CTF) accounts to be allowed to transfer their plan to a Junior ISA (JISA). However, since the introduction of Junior ISA’s in November 2011, the Government has repeatedly dismissed the option of allowing parents of children who hold CTF’s to transfer them to a JISA.
HM Revenue and Customs (HMRC) has announced that savings into ISAs has increased by £88m over the last tax year, despite the harsh current economic climate.
According to statistics released by HMRC, £56.86bn was deposited into ISA’s in 2011/2012 tax year, an increase on the previous year’s total of £53.77bn
Tory MP, Howard Flight, has spoken out against the Retail Distribution Review which is planned to come into effect at the start of 2013. It is his view that it could have a damaging effect on savers within the UK, reducing the availability of financial advice.
He also added that this would have a detrimental effect on the economy, by obstructing savings needed to pull the nation out of recession.
Research shows that children are becoming more accustomed to saving than ever, with 75pc of kids having their own bank account. 81pc of those children have also deposited money into their account in the last year, according to a study by MyFamilyClub.
The results of a survey from Hargreaves Lansdown have revealed that 72,000 Junior ISA (JISA) accounts were opened in the first five months since the launch of the product in November 2011. This led to £116m being invested in total, and the average account containing £1,614. The way in which JISA’s have been managed has also been scrutinised, and the results show that 89pc invest in lump sums and 68pc invest in more than one fund. 25pc of people have been found to make regular contributions into the fund, while 15pc will invest regularly in lump sums.
Employees who have opted to save via corporate ISA’s are doing so on a more regular basis and participating more actively in their schemes than those who have chosen corporate pension schemes. This is according to research by Equiniti, which shows that employees are on average managing three trades per year, adding up to £317.
