- Only a third (34%) of the nation has used an ISA over the past 12 months
- Two in five (40%) believe holding ISAs with multiple banks is very difficult
- Two thirds (66%) of savers want their bank to launch an ISA portfolio manager
According to the latest research1 from specialist bank Aldermore, only a third (34%) of the nation has used an ISA product2 over the past 12 months to save money. In the run up to the tax year end, the research reveals that half (50%) of those who haven’t believe they don’t have enough money to utilise the tax-free benefits of an ISA.
However, despite current financial pressures and a low interest rate environment, almost two in five (39%) still believe that ISAs allow them to get the most out of their money, and one in eight (13%) plan to use their full ISA allowance of £20,000 by the end of the financial year.
In a tough savings environment where it has never been more important to ensure their surplus cash is working hard, over three in five (62%) still only use one ISA product to save, despite multiple ISA products now being available for savers to meet different needs. The main hurdle for savers (40%) to utilise the benefit of holding multiple ISAs, is the complexity involved in managing these products with different providers. With that in mind, two thirds (66%) of savers want their main savings bank to launch an ISA portfolio manager to make the process of handling multiple ISAs easier. A portfolio ISA allows customers to open numerous cash ISA accounts up to the £20,000 allowance. This means they can maximise their returns, suit their savings objectives by capitalising on the different ISA products on offer, and still have easy access to a portion of their cash.
Commenting on the study, Ewan Edwards, Head of Savings, Aldermore says: “Even though the environment is tough for savers, our research shows that nearly two fifths (39%) of the nation believe ISAs help them make the most out of their hard-earned cash. Although this is positive, it is evident that there is still a lack of understanding around the importance of ISAs and the benefits this savings product provides.
“At Aldermore, we recognise that everyone’s financial situation is different, so we encourage people to explore the different products on the market to make the most of the tax-free ISA allowances. We have seen from the research that the majority (62%) of those with an ISA only stick to one product, when in fact they could reap the rewards of an ISA portfolio manager which makes the most of a range of cash ISA products.”
Aldermore recommends the following savings tips:
- Shop around to find the best ISAs on offer – there are still a number of good options on the market despite the low interest rate environment
- Setting aside a regular payment to your savings account at the start of every month;
- Utilising the personal ISA limit – this is tax-free so make your savings work even harder;
- Setting a short and long-term savings goal to work towards;
- Always track your spending and monitor budgets
Notes to editors
12,029 online interviews with UK adults (aged 18+) were conducted by YouGov from 19 - 20 October 2017
2 This refers to cash ISA, a stocks & shares ISA, an innovative finance ISA, a Help to Buy ISA, a Lifetime ISA or a mixture of all of them
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