Savers are snubbing £191bn in tax-free cash

Isa coins

British consumers are set to miss out on £191 billion in tax-free savings this year as they fail to use cash Isas.

With the deadline for savers to take advantage of their Isa allowance fast approaching, the number of people putting money aside money in tax-free accounts is set to fall by 9% this year.

According to new research from uSwitch only 54% of Brits are planning to put money into an Isa compared to 63% last year, meaning collectively savers are missing out on a total of £191 billion in tax-free cash.

The survey found that 19% of people said they simply couldn't afford to put any cash away for a rainy day, while 11% put their reluctance to use an Isa down to the low interest rates that are being offered.  

For those who are saving in an ISA, the average amount being put away is just £3,602 - down by £121 on last year's figures and well short of the maximum you are allowed to save of £5,760, according to

To highlight how important using your allowance is, savvy savers who have taken advantage and maximised their allowance each year since Isas were first introduced would now be almost £5,000 better off than if the money had been invested in an easy-access savings account.

Find the best cash Isa or savings account for you

Damp squib

Commenting on the factors that put off Isa savers, Jafar Hassan, personal finance expert at, said: "This Isa season is yet again proving to be a damp squib, with dismal rates unlikely to spark a fire under savers. Even locking away your money won't give you much to shout about with very few short-term, fixed-rate cash Isas offering more than the tax-free 1.75% savers can earn with easy-access accounts."

He said that the usual battle between banks and building societies to offer the best rates and lure savers has yet to materialise and "far fewer new cash Isa savings accounts have been launched compared to previous years".

"To make matters worse, many of the top deals on both cash ISAs and taxable accounts have disappeared in recent weeks - the Post Office has closed its Premier Cash Isa to new savers and Virgin Money has cut the rate for new savers on its Cash Isa," he said.

If you possibly can put some money aside for a rainy day by the end of the tax year, don't forget the deadline for this year's allowance is 5 April. Go to for our guide for the best deals.

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Predictable. People are beginning to vote with their feet and walka way from savings. Soon the banks and governement will realise what they have done!

Has anybody stopped to consider than there are many people who are not earning much more than £11000 per annum, and also lots who are now on minimum pay and reduced hours meaning they are on less than the tax allowance. Has anybody who writes for this ever tried ling and saving on less than £10000 per year???
I manage to save a little bit but I, like thousands of others could not think of saving £211 per weel when I only earn £170. The trouble is most of the establishment lie about what is really going on out there in the real workplace where if you remove all the people on the very worst pay very little would ever get done.
This is not about snubbing anything it is abot extreme low pay in the uk in the 21st century.

Couldn't agree more with the two comments above.

The same thing is often said about people not taking out personal pensions.
If you do have the ability to save, then currently there are no products at all that offer good value.

All we want is good value - then there will be a point in saving.
There is currently NO incentive at all. If you do have a bit left over, you may as well spend it, otherwise its value in real terms is constantly falling.
But as Rosej says, for the vast majority, minimal growth in pay which lags behind inflation means that most people are not as well off as they have been and they only see it getting worse no matter what figures the Government manipulates.

It appears to me that this sort of article by the financial institutions shows that they are scrabbling for more cash to be invested by the population as the profits on these products is where their pay and bonuses comes from.