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Santander: 35% of UK adults to pay into cash ISA

Approximately 17 million adults (35%) in the UK are planning to pay money into a cash ISA this tax year, according to new research from Santander Savings.

Young people are set to be the biggest ISA savers this tax year, with 40% of those aged 18-34 planning to pay into a cash ISA compared with just 30% of 35- to 54-year-olds and 35% of those aged 55 and over.
Those without children are most likely to put cash into an ISA, with 38% of married couples without children and 37% of single people who live on their own intending to do so.

Nearly half (45%) of all Londoners expect to deposit into a cash ISA, with savers in the East Midlands (37%) and the South East of England (36%) following closely behind. Those in the North East (26%) and Wales (29%) are the least likely to pay into a cash ISA this tax year.

Santander’s research suggests savers deposited an average of £1,883 into cash ISAs last year, with “secret savers” holding around £10.7 billion in cash ISAs that are kept hidden from partners and family members.

One in 10 of those who have a cash ISA say their family and/or partner has no knowledge of the account or the funds they are holding in it. The average amount held by these ‘secret savers’ in hidden ISAs is £3,468, rising to £5,196 for over-55s.

Of the 11.9 million savers who deposited into a cash ISA last tax year, 51% did so towards the beginning of the year compared with 26% midway through and 22% towards the end of the tax year.

Santander spokesperson Andy Smith commented: “With only three months gone in the new tax year, savers should be looking to make use of their full cash ISA allowance sooner rather than later.

“Trying to save as early as possible in to a cash ISA will always reap benefits - even more so for those early bird savers who took up the MAJOR ISA before Rory’s win on Sunday and will benefit from an additional one-off 0.1 per cent bonus on maturity.

“Depositing money in a cash ISA is a great way to save, with benefits including nearly a full year of tax-free interest, and there are still some very good rates of return available for those who are prepared to shop around.”

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