A recent survey conducted by NS&I indicates that the demographic of ISA savers has undergone quite a few changes in recent years. A survey of over 1,200 UK adults revealed some interesting insights into the behavior of savers in the past few years.

Over-50s top the ISA charts

In 2009/10, the over 65s triumphed when it came to making full use of their ISAs, with just over 40% using at least some of their annual ISA allowance. The average age of the ISA saver shifted sharply downwards in the 2011/12 tax year, with just over half of 25-34 year olds making use of their ISA during that time.

This year, the age range has swung back up again – albeit not as high – with 55-64 year olds proving to be the most efficient users of ISA allowances. 54% of those interviewed, who fell into this age bracket, said that they’d made use of their ISA allowance in 2012/13.

Decisions, decisions…

However, there were a few areas in which savers of all ages struggled, with only 16% of survey respondents stating that they made sure to read all the terms conditions when investing in an ISA – representing a decrease from 18% last year. This leaves a potential 84% of savers who might be liable to unexpected notice periods, charges and penalties because they haven’t read their paperwork properly.

It’s essential to make sure you understand what you’re getting into with any type of finance product, and ISAs are no exception. Make sure you don’t fall into that 84% by familiarising yourself with the terms and conditions of your ISA, and seeking independent financial advice if you’re unsure.  As NS&I’s Retail Customer Director, John Prout, says:  “With the end of the financial year fast approaching, now is an important time for everyone to review their savings.”

* Source: Survey of 1,206 UK adults, conducted between 5th and 7th February 2013.