ISA Allowance Reminder

ISA Allowance Reminder

Key points

 

  • Two thirds of Post Office customers maximised their cash ISA allowance in the 2010/11 tax year
  • Parents plan to invest average of just 34 per cent of Junior ISA allowance
  • Llandrindod Wells, Kingston upon Thames, Dorchester and Guildford top towns for cash ISA saving in the UK
  • Londonis the worst region for maximising tax free allowance
  • Men are better savers than women 

 

With the 5 April deadline fast approaching, Post Office reminds savers they don’t have long left to make the most of this year’s £5,340 tax-free cash ISA allowance and that next year’s cash ISA allowance increases to £5,640.

New customers making in-branch applications for a Post Office ISA must apply by 31 March. Postal applications must be received and accepted by Thursday 5 April.

Cash ISAs

According to Post Office data[1], two thirds of Post Office customers (65 per cent) maximised their full tax free cash ISA allowance in the 2010/11 tax year.

Men were better tax-free savers than women, with 68 per cent of male savers fully using their tax-free cash ISA allowance compared to 62 per cent of women. Perhaps unsurprisingly, the best savers were those aged over 55. Men aged 55-64 living in the South East were typically the best cash ISA savers with 81 per cent of them fully using their tax free allowance.

Top towns for cash ISA saving in the 2010-2011 tax year were Llandrindod Wells and Kingston upon Thames where almost four in five (76 per cent) savers used their full allowance. Dorchester, Guildford and Sutton followed closely behind to make up the top five.

Londoners were the worst at saving in the last tax year – 30 per cent of cash ISA savers in London saved less than £4,000 compared to 25 per cent nationally.

Richard Norman, director of savings and investments at the Post Office said:“Savvy savers are well aware that if they don’t use their yearly ISA allowance, they’ll lose it and it is encouraging to see so many people fully using this tax-free opportunity.  However many are still missing out.

“Post Office encourages savers to make their cash work as hard as possible, and cash ISAs are one way of doing so while avoiding tax on savings returns. The variety of accounts offered by the Post Office means there are options to suit everyone, no matter what type of saver they are.”

Junior ISAs

Post Office also offers a Junior ISA for those looking to save towards their child’s future and take advantage of further tax-free savings.

In a recent survey,[2]Post Office found just a quarter of parents (24 per cent) plan to invest in a Junior ISA meaning three quarters of children are potentially missing out on a tax-efficient lump sum when they hit 18. Those planning to invest into a Junior ISA intend to invest an average of just £1,236 a year, or 34 per cent of the yearly allowance.

Richard Norman commented: “Junior ISAs are a tax efficient way to save toward your child’s future, whether to help with a deposit on a house or to pay for their future education. If parents paid in the maximum £3,600 annually over the course of 18 years, their children could have a healthy lump sum to start them off in adult life.”

To find out more about Post Office cash ISAs, Junior ISA and other savings products log on towww.postoffice.co.uk/savings, call0800 169 7500or visit your local branch.

- ENDS -

Notes to Editors

Post Office Fixed Rate Cash ISA:

 

 

One Year

Two Year

Three Year

Interest rate

3.10% tax-free /AER* fixed

3.60% tax-free

/AER* fixed

3.70% tax-free/AER* fixed

Minimum opening deposit

£500

Maximum deposit

£5,340 per tax year

Transfers-in accepted

Additional deposits

No additional deposits during fixed term

Withdrawals

No withdrawals during fixed term -  account can be closed early for a breakage fee

Interest paid

Annually on the anniversary of opening during the fixed term

 

Post Office Cash ISA

 

Interest rate

2.25% tax-free/AER* variable inc. 2% tax-free/AER* bonus for the first 12 months

Minimum opening deposit

£100

Maximum deposit

£5,340 per tax year

Transfers-in accepted.

Additional deposits

Additional deposits from £1 can be made up to the £5,340 limit

Withdrawals

Requests for minimum withdrawal of £10 can be made by post

Interest paid

Interested paid annually in March

Post Office Junior ISA

 

Investment ISA

Stocks and shares Junior ISA. Contributions are invested in the Family Balanced International fund.

Minimum opening deposit

Open with a regular Direct Debit from a little as £10 per month. Alternatively you can open with a lump sum of £500 or more

Maximum deposit

£3,600 per tax year

Additional deposits

Permitted up to annual limit

Withdrawals

None permitted – funds only available to child once they reach age 18

To find out more about Post Office savings product go to http://www.postoffice.co.uk/finance/savings-investments

The Post Office has recently received the following awards for its popular savings range:

  • Best Savings Provider – MoneySupermarket Supers Awards 2011
  • Best High Street Savings Provider - Consumer Moneyfacts Awards 2011
  • Best Savings Account for consistency of rates - Moneywise Awards 2011
  • Best Savings Provider - What Investment Readership Awards 2011
  • Best Fixed Rate Bond Provider - 2011 Moneynet Awards
  • Best Fixed Rate Savings Provider - 2010 Moneyfacts Awards.

 

For more information, please contact:

 

Stuart Taylor          Post Office Press Office         02920 392 572

07715 480 146

stuart.taylor@postoffice.co.uk

www.postoffice.co.uk

 

Post Office internal data – ISA allowance - tax year 2010/2011

 

 

% of Total Customers

Maximise

Close

Far away

Total

FEMALE

MALE  

FEMALE

MALE  

FEMALE

MALE  

Unknown

0%

0%

0%

0%

0%

0%

2%

Under 25

1%

1%

0%

0%

1%

1%

4%

25 to 34

1%

1%

0%

0%

2%

1%

5%

35 to 44

2%

1%

0%

0%

2%

1%

6%

45 to 54

4%

3%

1%

0%

2%

2%

12%

55 to 64

11%

8%

1%

1%

3%

2%

26%

65 plus

16%

15%

3%

2%

5%

3%

45%

E.Anglia      

2%

1%

0%

0%

1%

0%

4%

E.Mids        

3%

3%

0%

0%

1%

1%

8%

London         

4%

3%

1%

0%

2%

2%

13%

N.East        

1%

1%

0%

0%

1%

0%

4%

N.Ireland     

1%

1%

0%

0%

0%

0%

2%

N.West        

4%

4%

1%

1%

2%

1%

13%

S.East        

6%

5%

1%

1%

2%

1%

17%

S.West        

4%

4%

1%

1%

2%

1%

12%

Scotland      

2%

1%

0%

0%

1%

1%

5%

W.Mids        

3%

2%

0%

0%

1%

1%

7%

Wales         

2%

2%

0%

0%

1%

1%

5%

York & Hums   

3%

3%

1%

0%

1%

1%

9%

Total

35%

30%

5%

4%

15%

10%

100%

Maximise:

Savers that maximised their tax free cash ISA allowance

 

Close:

Savers that subscribed over £4k but less than allowance

 

Far away:

Savers that subscribed less than £4k

 

 

 

[1]Sourced from internal Post Office data,  tax year 2010/2011

[2]Populus interviewed 704 parents of children aged under 18 between 13 and 15 January 2012. Parents were drawn from a Nationally Representative survey of 2,085 adults. Populus also interviewed 501 children aged 8 – 18 between 13 and 17 January 2012.

About Royal Mail plc
Royal Mail plc is the parent company of Royal Mail Group Limited, the leading provider of postal and delivery services in the UK and the UK’s designated universal postal service provider. UK Parcels, International and Letters (“UKPIL”) comprises the company’s UK and international parcels and letters delivery businesses operating under the “Royal Mail” and “Parcelforce Worldwide” brands. Through the Royal Mail Core Network, the company delivers a one-price-goes-anywhere service on a range of parcels and letters products. Royal Mail has the capability to deliver to more than 29 million addresses in the UK, six days a week (excluding UK public holidays). Parcelforce Worldwide operates a separate UK network which collects and delivers express parcels. Royal Mail also owns General Logistics Systems (GLS) which operates one of the largest ground-based, deferred parcel delivery networks in Europe.

 

Press Office: 0203 338 1007

The media can reach us by calling our Press Office line. Outside of office hours, calls will be transferred to our on-call Press Officer who will respond to calls as soon as possible.

Journalists can also contact us by email: press.office@royalmail.com

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