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TSB claims just 15% of Brits used full ISA allowance in 2013-14

New research from TSB showed that two-thirds of Brits failed to open an ISA in 2013-14 and that the nation’s savers could be missing out on £3.5 billion in ISA interest.

Just 15% of people used their full 2013-14 ISA allowance, and 22% invested a partial amount. With average balances standing at £1,211, this falls £4,549 short of last year’s cash ISA allowance of £5,760. Across the UK, this shortfall equates to more than £200 billion.

According to TSB, British savers could have saved more than £3.5 billion in interest in 2013-14 by saving the maximum based on the average ISA rate of 1.64%.

While 63% of Brits did not save in an ISA as they did not have any spare money at the end of the month, the research shows that 43% of those who save do so for a long-term investment such as their retirement. 

Head of savings at TSB, Jonathan Hall, says: “Interest rates might be low at the moment, but thinking about the long-term health of finances is important. Taking advantage of tax-free savings now should be high on the priority list as it puts more money back into people’s pocket.

“Even if someone has just a few pounds to save, they should be saving it in an ISA.”

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