Isa 'awareness is low'

Awareness of Individual Savings Accounts (Isa) and the benefits they bring is low among Brits, with many not sure of how they work or even that they exist at all.

Research from Britannia Building Society has estimated that nearly half of all adults in the UK (48 per cent) have never had an Isa and are missing out on the tax-free savings it offers.

In addition, 30 per cent of those questioned admitted to not knowing what an Isa is.

Neville Richardson, Britannia Group chief executive, said: "Our research reveals that there are many misconceptions about ISAs and people just don’t understand how they work.

"It’s a shame that many of those who are saving are unnecessarily being taxed twice – firstly on their income and then again on their savings.

"This means 48 per cent of adults are financially worse off by missing out on tax free returns on their savings."

Isas were introduced by the government in 1999, they come in a Mini size with a £3,000 to £4,000 limit depending on type and Maxi size, which allows up to £7,000 savings, of which only £3,000 can be in cash.