Lloyds TSB: Younger people still confused about ISAs

Research has shown that many younger people are unaware of the intricacies of ISAs.

Younger members of the British population need greater levels of help in order to understand how the best ISA rates available in the market can benefit them, a new study has suggested.

Research conducted by Lloyds TSB Savings found that a growing number of people in the 18 to 24 age bracket are not aware of what the acronym ISA stands for, with five per cent of respondents indicating they felt it meant Investment Standards Agreement.

In addition, around a quarter - 23 per cent - of young adults did not know that there is an annual tax-free savings limit on ISAs, with many showing their lack of knowledge with regard to what this threshold is.

Greg Coughlan, head of products at Lloyds TSB savings, observed that "some confusion amongst the younger generation" remains but added that "ISAs should always be a priority for savers".

Meanwhile, Yorkshire and Clydesdale Banks recently found that 28 per cent of Britons are saving more now than they did at this point in 2010.

By Kate Guthrie