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savers abandon isa’s as they run out of money and rates fall

Published: 16/02/2009

Telegraph.co.uk – 16th February 2009

  

ISA’s are one of the most popular form of savings in the UK, with 11.5 million people investing in the tax-free scheme, but as the Bank of England has slashed interest rates over the last year, so too have ISA providers.

 

Andrew Hagger at personal finance website Moneynet.co.uk said basic rate taxpayers could lose up to £223 in tax relief every year if they withdrew all their ISA savings even at today’s low rates.  Higher-rate tax payers could lose out on £446.

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