Almost 75 per cent of people will forego their ISA allowance this year, finds the Co-operative.

The Co-operative annual ISA Intentions Report shows that 73 per cent of those yet to invest in an ISA during the current tax year do not plan to use any of their allowance before the deadline runs out on 5 April, up from 60 per cent in 2008.

And despite interest rates being at historic lows, eight in ten of those who do intend to invest in an ISA plan to use a cash scheme over stocks and shares.

Zack Hocking, head of investments, says, ‘These figures are concerning. Not only do they confirm that many people intend to let their ISA allowance fall by the wayside, reluctance exists to invest in the stock market at a point when many industry experts are saying it could be a great time for investors with a longer-term horizon.

‘Once the deadline passes, that's it – the allowance is lost forever, and people should not be put off saving despite uncertainty in the economy or the stock markets. If in doubt they should consider taking financial advice from an expert to ensure they fully understand the merits of continuing to save.’

The findings also show that the recent turmoil in financial services is having an impact on the way consumers choose where to place their savings.  

Six in ten of those that will invest between now and 5 April will use trust as a means of selecting their ISA provider.

Hocking adds, ‘Investors are now clearly reluctant to put their money into organisations that have previously been reckless with their savings. They want to deal with providers they can trust to be responsible with their money.’