Investors 'ready to make use of ISAs'

With the savings limits on ISAs increasing as the new tax year gets underway, new research shows many investors are looking to make maximum use of such products.

A significant number of investors are keen to take advantage of the increased savings limits on hand with ISAs.

With a total of £10,200 now able to be saved into a cash and shares-linked ISA account, Barclays Stockbrokers reveals 71 per cent of consumers are planning to invest the maximum amount into the tax-free savings product.

A further one in ten claim they will put more money into the UK account, although it is unlikely to be the full limit.

Meanwhile, 31 per cent plan to invest a lump-sum into their ISA at the start of the new fiscal year.

"By investing your ISA allowance at the start of the tax year, you can effectively get an extra year of tax-free growth compared to someone investing on the last day," Barbara-Ann King, head of investments for Barclays Stockbrokers, states.

Over half (59 per cent) of respondents are keen to take advantage of the tax-efficient savings that ISAs offer, while 29 per cent believe they will provide a better return than cash-linked products.

However, a recent study by Clydesdale and Yorkshire Banks revealed that only 15.1 per cent of people are making full use of such savings accounts.

By Ashley King