Forgetful ISA savers could be in a fix

Thousands of savers could miss out on this year's ISA allowance because they have failed to give their provider instructions for matured accounts, according to new figures from Halifax.

Halifax estimates that as many as 400,000 savers could be failing to give their provider timely instructions for maturing fixed-rate ISAs each year. ISA savers who opted for fixed-rate products in previous tax-years that are now maturing are required to give their provider instructions for the funds once the term is complete. Failing to do so could mean they miss the ISA deadline for this year or at least not earn the rate of interest they could otherwise.

Not all providers give customers advanced notice of the imminent maturity of fixed-rate savings. Halifax writes to customers one month before accounts are due to mature to remind customers and provide them with the opportunity to give instructions for the matured funds. For those Halifax customers who fail to provide instructions, their money is automatically placed in a Halifax ISA Saver and so avoids losing their ISA allowance.

Mike Regnier, head of savings at Halifax, comments, "Advising your provider of what you want them to do with your money once the account has matured is always important so as not to lose any interest. At this time of year it is even more crucial so as not to lose the tax-free benefits of your annual ISA allowance.

"We write to all our fixed-rate savers well in advance of the maturity date, not all savers get that helpful reminder from their provider."