17 million Brits plan to pay into a cash ISA this year

Approximately 17 million adults (35 per cent) in the UK are planning to pay into a cash ISA this tax year (between April 6th 2012 and April 5th 2013), according to research from Santander Savings.

The research coincides with the news that over 600,000 Santander MAJOR ISA customers will receive a one-off 0.10 per cent bonus following UK golfer Rory McIIroy's win of the US PGA Championship last Sunday. It found that young people are set to be the biggest ISA savers this tax year, with 40 per cent of those aged 18-34 planning to pay into a cash ISA compared to just 30 per cent of 35-54 year olds and 35 per cent of those aged 55 or over. Those with no children are most likely to put ISA cash away, with 38 per cent of childless married people and 37 per cent of single people who live on their own intending to do so.

Nearly half (45 per cent) of all Londoners expect to deposit into a cash ISA, with savers in the East Midlands (37 per cent) and South East of England (36 per cent) following closely behind. Those in the North East (26 per cent) and Wales (29 per cent) are the least likely to pay into a cash ISA this tax year.

Santander's research suggests that savers deposited an average of £1,883 into cash ISAs last year, yet "secret savers" have around £10.7 billion deposited in cash ISAs kept hidden from partners and family members.

One in 10 (11 per cent) of those who have a cash ISA say their family and/or partner has no knowledge of this account or the funds they are holding in it. The average amount held by these ‘secret savers' in hidden ISAs is £3,468, rising to £5,196 for over 55s.

Of the 11.9 million savers who deposited into a cash ISA last tax year, more than half (51 per cent) did so towards the beginning of the year, compared to one in four (26 per cent) midway through and one in five (22 per cent) towards the end of the tax year.

Andy Smith at Santander, commented: "With only three months gone in the new tax year, savers should be looking to make use of their full cash ISA allowance sooner rather than later. Trying to save as early as possible in to a cash ISA will always reap benefits - even more so for those early bird savers who took up the MAJOR ISA before Rory's win on Sunday and will benefit from an additional one-off 0.1 per cent bonus on maturity. Depositing money in a cash ISA is a great way to save, with benefits including nearly a full year of tax-free interest, and there are still some very good rates of return available for those who are prepared to shop around."

Customers who have taken up Santander's innovative 2 Year Fixed Rate MAJOR ISA, part of Santander's cash ISA offering for 2012/13 tax year, already benefit from a market-leading 4.00 per cent AER tax free (fixed) return.  Due to Rory McIIroy's win of the US PGA Championship, one of the eligible golf ‘Majors', they will now also earn an additional one-off bonus, at maturity, of 0.10 per cent tax free

Although the MAJOR ISA is now closed to new customers, Santander continues to offer a great range of competitive cash ISAs including a 2-year offering 3.60 per cent AER tax free (fixed); a 1-year fixed rate ISA paying 3.20 per cent AER tax free (fixed) and Direct ISA Issue 10 offering 3.00 per cent AER tax free (variable) including a variable bonus of 2.50% for the first 12 months. The Santander cash ISA range allows ISA transfers in so that savers may keep all their ISA money in one place, earning a great return. The cash ISA range is available to open online at santander.co.uk.