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Two thirds unaware of NISAs

24th June 2014

Nearly two thirds (63%) of UK adults are unaware of the tax free savings allowance one week before the launch of New ISAs (NISAs), according to research from MoneySuperMarket.

The survey by the comparison site reveals that 32 million people do not know about the introduction of NISAs.

Of those that have heard of them, 24% do not understand the new rules.

Key findings:

  • 68% of 18 to 34 year-olds have not heard of NISAs, rising to 70% of people aged 35-54
  • 35% of respondents said they are likely to use a NISA, while 30% said they are unlikely to
  • 45% of 18 to 34 year-olds said they might use the new savings products
  • 33% of over-55s are likely to use a NISA
  • 28% believe NISAs will help them save more
  • 45% of 18 to 34 year-olds think they will save more, dropping to 26% of 35 to 54 year-olds and 18% of over-55s.

Kevin Mountford, head of banking at MoneySuperMarket, said:

"I am surprised that so many people are unaware of the introduction of NISAs. Similarly, there is also a clear lack of understanding among many as to the rules and benefits of saving into one.

"The launch of NISAs is brilliant news for savers, not only will they be able to switch stocks and shares into cash, a move that wasn't possible before 1 July, but the annual limit will rise to £15,000. This is almost 3 times as much as the current cash ISA limit and almost a third more than the stocks and shares limit.

"However, with so many people unaware of these rules, more needs to be done to ensure that people will actually reap the rewards."

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