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Two Thirds of ISA Savers Want Limits on Cash ISAs Increased

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 , 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 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:

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 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:

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

Paul Beadle
01793 655189