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Younger savers 'lack understanding' of ISAs
People aged between 18 and 24 years are still unaware about the benefits of cash ISAs, Lloyds TSB has suggested.
However, research by the bank shows that more people are generally savvier about the savings option, with 85 per cent of people understanding that they do not have to pay tax on the interest earned in an ISA.
"Whilst it is very encouraging to see how the nation is increasingly more ISA aware and now truly understands the benefits of cash ISAs, it is obvious that there is still some confusion amongst the younger generation," commented Greg Coughlan, head of Lloyds TSB Savings products.
There is still some way to go for the public to fully understand the benefits of ISAs, research by the bank found, as almost a quarter of people surveyed did not know that there is an annual limit on how much can be saved in a cash ISA.
Indeed, just 23 per cent of respondents know that the limit will increase to £5,340 from the April 6th new tax year.
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However, research by the bank shows that more people are generally savvier about the savings option, with 85 per cent of people understanding that they do not have to pay tax on the interest earned in an ISA.
"Whilst it is very encouraging to see how the nation is increasingly more ISA aware and now truly understands the benefits of cash ISAs, it is obvious that there is still some confusion amongst the younger generation," commented Greg Coughlan, head of Lloyds TSB Savings products.
There is still some way to go for the public to fully understand the benefits of ISAs, research by the bank found, as almost a quarter of people surveyed did not know that there is an annual limit on how much can be saved in a cash ISA.
Indeed, just 23 per cent of respondents know that the limit will increase to £5,340 from the April 6th new tax year.
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Published: 22/03/2011
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.