UK savers are set to lose out on interest to the tune of £49million from potential ISA savings by not making the most of the allowance.

Marking the six month anniversary of the ISA allowance increase, research from Halifax has found that even amongst those who did top up their cash ISA in the first half of the year, most have not taken full advantage of their increased allowance.

Savers could be throwing away £49million of tax-efficient interest, Halifax has calculated, if they let the rest of the tax year pass without making the most of their ISA.

Less than one in three UK consumers has an ISA, Halifax’s research suggests, so the bank is urging people not to pass up the opportunity of tax-efficient savings.

Russell Galley, managing director of Halifax savings, said that with so many different ISAs available, he is concerned that more people are not taking advantage of their allowance.

“If you have something to save, no matter how large or small an amount, it should be saved in an ISA,” he said.

“We’re also worried about those savers with an ISA who are not making the most of it either by failing to top it up or languishing in a poor rate when they could transfer for a better return,” Mr Galley continued.

Halifax has just launched the ‘industry leading’ Halifax Cash ISA Promise, which pledges to pay interest to customers from the same day they switch to a new ISA.

“For too long, savers have been at the mercy of an archaic system,” Mr Galley added, and Halifax hopes that this will encourage consumers to switch in search of the best ISA deals.

The new ‘best buy’ Halifax cash ISA Direct Reward offers savers a competitive variable rate of 2.80 per cent for 12 months, which can be opened with £1; existing Halifax current account customers can earn a higher rate of 3.00 per cent.

© Fair Investment Company Ltd

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