After its research found that just a fifth of Brits intend to take advantage of their full ISA allowance this tax year, Abbey is urging them to ‘use it or lose it’ before time runs out.

With the end of the tax year now just days away, those who have left it until the last minute to invest in an ISA should get their skates on, Abbey says, or it will be too late to benefit from this year’s tax-free savings allowance.

One in eight respondents to Abbey’s survey said that they have saved in an ISA this year, but have not paid in the whole £3,600 which they are allowed, while 18 per cent do intend to save the full amount before Sunday’s deadline.

As the base rate brings the returns on savings accounts down, consumers are showing their savvy side, with 83 per cent saying that a good interest rate is an important factor when looking for an ISA, yet 37 per cent said that they are unaware what rate the average ISA is currently paying.

Reza Attar-Zadeh, director of Abbey savings and investments said: “With less than a week to go before the end of this tax year, the savvy savers among us will be aware the tax-year deadline means making the most of the benefits of ISAs.

“Those looking to do so will be pleased to know that they can invest as little as £1 in an Abbey Cash ISA.”

“It really is a case of use it or lose it as once the deadline passes and we roll into a new tax year, any unused allowance from the previous tax year is gone forever,” Ms Attar-Zadeh added. “Making the most of your tax-free allowance by sheltering your savings in a Cash ISA is a great way to make the most of your money – ideally by using this year’s allowance and then starting to build a tax-free savings pot in the new tax year too.”

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© Fair Investment Company Ltd