£822 million lost in tax-free Cash ISA interest

The deadline for “using or losing” your Cash ISA pot this year is looming, however Post Office’s ISA Savings Report can reveal savers stand to lose out on £822 million in tax-free interest by failing to make use of their full Cash ISA allowance.

Just a fifth (22 per cent) of Cash ISA holders plan to use their full allowance this financial year.  The average saver currently has £2,737 stored away tax-free – less than half (49 per cent) the amount available to them, and £2,903 short of the optimum limit. 

Londoners are the mostly likely to use their full Cash ISA allowance before the end of the financial year (33 per cent) and have an average of £3,612 saved.  In contrast, just one in ten (13 per cent) savers in Yorkshire and Humber will save the full amount, and have just £2,003 stored away - £3,637 short of the full allowance.

Henk Van Hulle, Head of Savings at Post Office, said: “With just under a month until the end of the financial year, Cash ISA holders still have a chance to save £5,640 tax-free.  With the allowance increasing for the next financial year (£5,760), Cash ISA holders should make sure they are planning ahead and shopping around to find the best ways of making their money go further.  By putting away as much as they possibly can throughout the year savers can avoid any last minute panic.”

For more information, visit postoffice.co.uk/savings