Two Thirds of ISA Savers Want Limits on Cash ISAs Increased

Two Thirds of ISA Savers Want Limits on Cash ISAs Increased 
Different rules are confusing; putting off nearly a quarter from
saving into an ISA 
LONDON, UNITED KINGDOM -- (Marketwired) -- 05/23/13 -- 66% of ISA
savers think, that if they could be increased, cash ISA limits should
be brought into line with higher stocks and shares ISA limits for all
savers, according to research by Nationwide Building Society, which
also reveals that many people find the tax-free savings accounts
complicated or confusing. 
The findings show a majority of people may support Nationwide's call
to double the cash ISA limit from GBP 5,680 to GBP 11,280, making it
the same as the stocks and shares ISA limit. The Society says that
not only will higher cash ISA limits benefit savers such as
first-time-buyers and pensioners, it will also make the whole ISA
system simpler. 
This is borne out by YouGov research carried out online on behalf of
Nationwide. The research found: 


 
--  30% find ISA rules confusing 
--  31% find the differences between cash and stocks and shares ISAs
    confusing - more so than any other aspect 
--  23% say the different rules which apply to different types of ISAs put
    them off saving into any ISA 
--  In particular, 21% find the annual limits confusing, 24% are confused by
    the way limits change every tax year, whilst 22% are confused by the
    timings for when they could invest in an ISA 
--  In fact, 32% don't know what 'ISA' stands for

 
Nationwide believes that bringing parity to the ISA limits will make
them more accessible and less confusing, thereby helping to encourage
a more positive savings culture in the UK. The research showed that
people were particularly confused when it came to comparing stocks
and shares ISAs with cash ISAs, so it is no wonder most people would
prefer saving in cash over stocks and shares for an ISA (61% choose
cash). 
Nationwide's research also revealed: 


 
--  81% don't know how much you could save into an stocks and shares ISA
    compared to a cash ISA 
--  26% say it is unfair that you can save more in a stocks and shares ISA
    than you can in a cash ISA 
--  22% of people say they would be more likely to save into an ISA if the
    limits were equalised

 
Richard Marriot, Nationwide's head of savings, said: "ISAs are
clearly popular and an extremely useful way of saving tax-free, but
it seems a significant proportion of people are confused by the
current rules. This could mean individuals are less likely to use
them to save. Making the limits the same for both cash and stocks and
shares ISAs would help to simplify them, giving savers more
confidence about opening and getting the most out of their ISA.
Calling for parity on ISA limits and the ability to transfer from a
stocks and shares ISA to a cash ISA is just one of the ways in which
we are working to meet our target of empowering 1 million people to
start saving by 2017". 
Case studies are available on request. 
Notes to Editors  
All figures, unless otherwise stated, are from YouGov Plc. Total
sample size was 2081 adults. Fieldwork was undertaken between 13-15
March 2013. The survey was carried out online. The figures have been
weighted and are representative of all UK adults (aged 18+).
Contacts:
Deborah Isaac-Taylor
01793 655354
deborah.isaac-taylor@nationwide.co.uk 
Paul Beadle
01793 655189
paul.beadle@nationwide.co.uk
 
 
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