Public Still Not Fully Informed About ISAs

Interesting new research from confused.com has shed light on consumers’ lack of awareness about ISAs. A surprising 43% have never had an ISA, whilst 14% don’t even know what one is.

Consumers are also confused about the amount which can be saved in an ISA, with only half of respondents guessing correctly and a quarter admitting they had no idea. Young people seemed particularly less interested in saving with an ISA; 50% of 18-24 year olds admitted to never having used one.

Some amusing responses included 7% thinking ISA was a text speak abbreviation, 5% thinking it was the name of a boy band and 2% thought it was a sports drink.

Chris Griffiths, head of savings at confused.com said: "It’s worrying that 14% of Brit’s don’t know what an ISA is given that they’ve been around for more than a decade.  It’s even more of a concern that two fifths of people have never had one and that 51% haven’t used this year’s allowance.  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."

Individual savings accounts, or ISAs, allow an individual to earn interest on a deposit up to £5,100 without having to pay income or capital gains tax. They are also flexible in allowing deposits and withdrawals at any time.