Cash ISA savers could be missing out on tax free interest

As many as one in three Cash ISA savers are not taking full advantage of their tax? free allowance, according to research by M& S Money.

By not saving the maximum of £3,000 in the current and previous tax years, savers could have lost out on £35 per head in tax? free interest – a potential £23million a year for savers who haven’t been using their full annual Cash ISA allowance.

Brendan Cook, Chief Executive of M& S Money, said: “With an estimated 2million new Cash ISAs to be opened in the current tax year, savers could be losing out on a huge amount of tax? free interest. We urge savers to take more interest in their savings and make full use of their Cash ISA allowance, particularly from April 6th when the allowance will be even more generous at £3,600 a year”.

M& S Money guarantees that the variable rate paid on its Cash ISA (currently 5.25% AER/tax free) will at least match the Bank of England’s base rate until 1st January 2010.

M& S Money also offers 1, 2 and 3 year Fixed Rate Savings with guaranteed interest rates up to 5.70% AER/gross, available both inside and outside an ISA wrapper.

Customers can apply at marksandspencer.com/isa.