Over half of adults don’t understand ISA rules

Research conducted by Opinium on behalf of SavvyWoman shows that 56% of consumers are confused about what you can and can’t do with an ISA. These people could be leaving their savings to deteriorate in a low paying account and consequently miss out on higher rates of interest.

Worryingly, 9% of adults wrongly believe that you can only move money if your total balance remains below the ISA threshold for the current tax year.

Just 24% of adults surveyed understood that you can transfer any money from previous tax years into a current ISA.

Women were also less likely than men to understand the rules, the survey found.

The ISA limit for the 2016/17 tax year is £15,240 and this will increase to £20,000 for the 2017/18 tax year, which begins on 6 April 2017.

Only one-fifth of people were aware that the ISA limit is increasing to £20,000. Around a third (36%) gave an incorrect answer to this question and 43% did not know at all.

 

Read more about this research here.