Bank Advises Consumers of ISA Advantages

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Bank Advises Consumers of ISA Advantages

Fri, 19 Mar 2010

The head of savings, investments and pensions at HSBC has urged consumers not to forget the advantages of ISA savings accounts . Cash ISAs have suffered a dip in popularity since the onset of the credit crunch, as borrowers look to repay any loans or debts rather than saving money. Furthermore, the interest rates offered on ISAs have been miserly, leaving consumers with little incentive to save.

An HSBC survey revealed that 50 per cent of people in the UK have an individual cash ISA, though a recent survey by fairinvestment.co.uk revealed that in 2008 and 2009, this figure fell to 37 per cent of taxpayers. The same survey suggested that £15 billion had been lost in tax as a result of unused ISA allowances.

David Wells from HSBC has urged consumers to use ISAs as their first form of savings account, insisting that they offer a good way to boost savings at a time when interest rates are low. Citing their simplicity and accessibility as a major advantage, Mr Wells also pointed out that anyone under 50 will see their allowance increase from £3,600 per year to £5,100 on April 6th.

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