Scots savers find Isas taxing
INDIVIDUAL savings account (Isa) holders in Scotland are less likely to use their annual tax-free allowance than savers elsewhere in the UK, according to research out today.
Just one in four savers knows the annual Isa allowance – currently £10,680, including £5,340 in cash – and while 80 per cent of them say it’s important to put money aside regularly, only 24 per cent are doing so, a Lloyds TSB survey found.
More than half of Isa savers say they haven’t put the maximum amount in their account in the current tax year, with 62 per cent of Scots failing fully to top up their Isa. Inflation and low interest rates have wiped out the returns from savings accounts over the last three years, yet savers are more likely to use normal accounts than tax-free cash Isas.
More than seven in ten are putting money into a standard savings account.