The forgotten ISA season

Abbey Savings urges people to use up their ISA allowance first when saving for the future, following recent research undertaken by Abbey.

The research shows that, while savings openings remain broadly consistent throughout the year, ISA sales drop off dramatically throughout the second half of the year – probably linked to reduced ISA advertising and editorial in the media.

This means many people may not be using up their ISA allowance when they save money, thereby paying more tax than they need to. Research from Mintel in 2006 shows that 19m people could benefit from moving their savings into a cash mini ISA.

Alexia Kilby, Head of Savings at Abbey, said: “The concept of an ISA season has obscured a simple fact – you can take advantage of your ISA allowance at any time of the year.

“There have never been more attractive rates for cash ISA investors. Abbey’s Direct ISA, for example, currently offers rates up to 6.25 per cent, while our Super ISA – available when you invest the same amount or more into an Abbey Guaranteed Growth Plan – offers 8.10 per cent.

“We would urge savers to ensure they use their ISA allowance to ensure they minimise their tax bill.”

All Abbey’s ISAs allow transfers of existing ISA balances. The average transfer balance of ISAs is £12,000.