Of the 2,000 people surveyed, almost half (47%) said they are confused by the rules associated with ISA accounts, over two fifths (44%) said they didn’t know what the maximum amount is they could put into an ISA and over a third (36%) didn’t know what the new Personal Savings Allowance was.
A fifth (22%) stated they didn’t know how ISA differed from standard savings accounts, and surprisingly one in ten (10%) said they didn’t even know what the acronyms ISA or PSA stood for.
Kris Brewster, Head of Products at Skipton Building Society, said:
“It is clear from our research that the nation is confused when it comes to saving. With the different types of savings accounts out there it seems that this confusion is not only preventing people from making the most of their tax free savings options, for one in ten, it’s a barrier to saving - full stop.
“And with the introduction of the new PSA this week and the Lifetime ISA, which the government has introduced to encourage people to save for the future, we believe these will add only more confusion and concern for consumers. The savings landscape is becoming too complicated, especially with multiple types of ISA products.
“At Skipton Building Society, we’d encourage the government to think about really helping savers by ending tax on all savings interest, and in doing so, abolishing the need for ISAs, putting an end to this confusion and creating a nation of lifetime savers.”
