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Almost half of UK savers unaware of New ISA

7th August 2014 Print

From 1 July, millions of savers in the UK have been able to benefit from new ISA reforms announced in this year’s Budget. These changes allow savers to take advantage of increased tax-free savings and to have greater flexibility in how they choose to save. 

One month since the introduction of New ISAs, new research from online savings provider, GE Capital Direct reveals awareness levels amongst UK savers are low with almost half (47%) saying they are not aware of the New ISA changes. 

Less than one in five (18%) said they are aware of increases in ISA allowances and nearly six in ten (55%) British savers say they did not know when it was made available.

The research amongst 2,300 savers also reveals that as many as 47% of people say they don’t plan to do anything with their savings despite NISAs allowing people to boost their tax-free savings to £15,000. Since the New ISA launched, the figures show only 4% have ‘topped up’ their ISA savings.

Commenting on the findings, Sheragh Beirne, CMO and MD Retail Banking at GE Capital UK said: “The introduction of New ISAs should be a welcome boost for savers in the current low interest rate environment. Our research shows, however that, many savers are missing out by failing to optimise their tax free savings of £15,000 this year.”