Many British savers do not know that they can reduce tax payments on savings using products such as ISAs, a new survey finds.
UK consumers could be paying less tax on savings - but many do not know about the options available, according to new research.
A study by insurance firm Scottish Widows found that more than three million people in the UK have no idea what an Individual Savings Account - or ISA - is. ISAs allow consumers to save up to £7,200 annually without having to pay any tax on the income made from the investment.
Scottish Widows discovered that many people are looking to put money away who have not previously done so. Almost three quarters of people who did not save any money in the last year want to begin doing so, the company's research discovered.
However, just a quarter of respondents intend to sign up for an ISA in the new tax year, while 16 percent said they were unsure if they will.
"It's clear from these results that there is a serious need for greater financial education when it comes to ISAs," said Scottish Widows savings and investments boss Gordon Greig. "Everyone aged 18 and over in the UK has an ISA allowance, and should be taking advantage of this tax-free product."
The study recorded that the 18 to 24-year-old age group were the least likely to be aware of ISAs.
