Confused.com reveals that 14% donít know what an ISA is
Confused.com, the price comparison site, has revealed that 43% of Britís have never had an Individual Savings Account (ISA) and that 14% didnít know what an ISA was.
The research revealed that 7% of people though it was text speak from ďIím so awesomeĒ, 5% thought it was a new Australian boy-band and 2% thought it was an isotonic sports drink.
When asked how much could be saved into a cash ISA, only one in two respondents correctly knew that the current cash limit was £5,100 per year, with 6% saying there was no limit and 11% believing they could add £500 every month. 5% knew the total ISA limit (cash and equity) was £10,200 but thought your salary had to exceed £30,000 a year to qualify. 27% admitted they didnít have a clue.
Research also revealed that only 51% of savers have used this yearís ISA entitlement. Given that 22% of respondents said their main savings goal was retirement and a further one in five (20%) said they were saving towards a deposit for a house, Confused.com voiced itís concerns that so few were making use of their tax free allowance to help them achieve these long term goals.
Head of savings at Confused.com, Chris Griffiths, said: ďItís worrying that 14% of Britís donít know what an ISA is given that theyíve been around for more than a decade. Itís even more of a concern that two fifths of people have never had one and that 51% havenít used this yearís allowance. An ISA really should be the first port of call for your savings as you can earn interest without it being taxed, giving you a better return and ultimately putting more money in your pocket. Using your allowance each year can be a great way to help you towards your long term savings goals; as your tax free savings pot grows so will the interest you earn. Getting an ISA is really straightforward, shop around for the best deal for you and consider managing your account online as these accounts may offer you a higher rate of interest. Remember you only have until 5 April to use your tax free allowance this year.Ē
Other findings showed that 18-24 year olds are the least likely to have an ISA, with 50% admitting theyíve never had one while 9% of 25-34 year oldís thought ISA was a text speak abbreviation. Those aged 45-54 (96%) and 55+ (95%) were most likely to know what as ISA was and correctly identify the cash limit (63% and 62% respectively). Those in the North West and East Anglia were the most likely to have saved this yearís allowance (both 54%) while those in Northern Ireland were least likely to have made the most of tax free saving (just 38%).
Confused.com is one of the UKís biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance. †
Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.comís service is based on the most up-to-date information provided by UK suppliers and industry regulators.
Notes to editors:
Research conducted by OnePoll on behalf of Confused.com December 2010.
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