Tuesday 25th March 2008
Time is running out for Britons looking to make the most of their tax-free savings allowance.
For those with individual savings accounts (Isas), April marks the end of one year and the beginning of another.
But anyone who has not deposited the maximum amount permitted by law should be aware that they forfeit any outstanding allowance - and the potential interest which could be generated by adding that amount to their savings.
Research by Nationwide shows that the majority (58 per cent) of Isa holders would like to have more in their accounts.
Moreover, there is confusion among some individuals as to the terms and conditions of their account.
Nationwide asserts that all Isas are instant-access, meaning there are no limitations on whether or not the accountholder can withdraw their funds.
But nine per cent of respondents told the financial services provider that they do not use their Isa because they need instant access to their savings.
Director for savings Matthew Carter says: "Work needs to be done to encourage people to make the most of their Isa allowance.
"With one in ten Isa holders opting to save in a regular savings account instead of their Isa, its essential that consumers are educated about the benefits of tax-efficient savings."
Cheshire Building Society is one of the providers catering for those who have left their Isa deposits to the last minute.
The organisation has launched a 12-month fixed-interest product with a guaranteed return of six per cent gross annual equivalent rate.
For those already looking to the 2008 financial year, Bradford and Bingleys 6.25 per cent account is due to launch on April 6th.
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