Don't give up on ISAs

Savers are being urged to make the most of their ISA allowance, or risk sacrificing even more of their savings to tax.

Calculations by moneysupermarket.com show savers who have used their full cash ISA allowance in each of the past 10 years will be £2,700 better off than basic rate taxpayers who have saved the same amount outside an ISA. A higher-rate taxpayer would be more than £4,800 down.

Kevin Mountford, head of banking at moneysupermarket.com, said: "Inflation is on the way down and cash ISAs are paying around 3.25 per cent, so they are still a very good proposition for savers.

"With ISA rates halving from their high of 6.5 per cent last year, it's more important than ever to ensure your savings are working hard for you. Saving within an ISA is a no-brainer as the figures suggest - an extra £2,700 over 10 years is nothing to be sniffed at."