ISA investors are not making full use of their tax-efficient allowance, according to new research from Nationwide Building Society.

The research revealed that almost a tenth of savers do not want to save any more into an ISA, as they ‘prefer to keep their savings in an instant-access account’, despite the fact that all ISAs are instant access.

A further ten per cent don’t want to save any more because they feel they save enough; and those respondents that would like to save more stated that they simply didn’t have enough money to do so.

With fewer than half of ISA holders intending to save more in their ISA when the revised limits come into effect in April, Nationwide believes more needs to be done to engage savers and would-be ISA holders to ensure they fully understand the benefits of ISAs.

Matthew Carter, director for savings at Nationwide, says, ‘With just over a week to go before the new ISA limits come into force, work needs to be done to encourage people to make the most of their ISA allowance. With one in ten ISA holders opting to save in a regular savings account instead of their ISA, it is essential that consumers are educated about the benefits of tax-efficient savings and how most ISAs allow instant withdrawals.  

‘Nationwide calls on all would-be savers to make use of their ISA allowance – with only a week to go until the end of the tax year, now is the perfect time to start saving.’