And over half wish they had learned more about ISAs at an earlier age – as 43% aren’t sure what different types of ISA are available to them
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HMRC staff serenaded by 16-piece gospel choir
Nearly a fifth of savers (18%) say they don’t understand the benefits of an ISA account – with 58% wishing they had learnt more about these types of accounts earlier in life, a study has found.
One of the top reasons people have opened an ISA is to invest or save money in a tax-efficient way (65%) – with over a third (34%) using the account to gradually build their wealth over time.
In fact, three in 10 of those (31%) are saving towards retirement – with 29% feeling their ISA offers financial security, due to its tax-free benefits.
As such, half of those who put their savings into an ISA, prioritise doing this over depositing them into any other type of savings account.
However, almost half (43%), of the 2,000 adults polled, admit they are unsure of the different types of ISAs available to them – while 19% say they need easier access to their cash, to help them achieve shorter-term goals.
In light of the findings, and with tax year end just days away, Skipton Building Society is urging people to make the most of their ISA allowance before this Friday’s deadline day.
And to highlight this, the building society teamed up with a 16-piece gospel choir – which serenaded HMRC staff on their way into work, at one of their busiest times of the year.
Singing uplifting music to taxmen and women entering the Revenue & Customs building, the choir’s tongue-in-cheek performance was a way of sharing their gratitude for tax-free savings – as it’s not often Brits get something for free from the taxman.
The singers performed several classic gospel songs, as well as their versions of pop tracks like “One Love” by Bob Marley, Pharrell Williams’ “Happy” – and “Money Money Money”, by ABBA.
One worker quipped: “I don’t tell people I work for the taxman because it just causes arguments, so this is a bit of a surprise. It’s a nice little thank you – I’ll take it.”
Another said as they entered the office: “I saw this amazing choir singing happy gospel – it just made my day.”
The choir were also giving complementary coffees out to HMRC workers and commuters, encouraging people to make the most of their ISA allowance ahead of this year’s deadline day on Friday (April 5).
A tax worker added: “People need to be aware of taxes and what they’re entitled to [in relation to their savings]. It’s a minefield in itself – we want to make it easy for people to understand.”
Nine in 10 Brits went on to say that tax-free saving is important to them when looking to set up a new account, according to the study, carried out by OnePoll. And, in fact, over their years of saving in an ISA, 36% have at least once been able to max out their £20,000 tax-free allowance.
Alex Sitaras, head of savings products for Skipton Building Society, added: “You’ve got to give it to the taxman – and normally, when it comes to tax, you do.
“But when it comes ISA savings accounts, you have a £20,000 tax-free ISA allowance – the taxman is giving you something for once, and we want all savers to make the most of it.
“According to our analysis of CACI data, only 27.7% of new account openings in Great Britain in 2023 were into a cash ISA – leaving potentially millions of pounds of hard-earned savings not protected from the taxman.
“And we have seen from the research just how important ISAs are for helping people to save for their future – allowing them to put aside a great amount each year, without having to worry about the taxman knocking on their door to take a little extra off the top.”
