Benefit from the use of a tax-free ISA

Brits who have paid their money into an ISA account could be saving far more money than if they simply leave it sitting in a standard current account, it has been claimed.

According to MoneySupermarket, people who put the maximum value allowed into a cash ISA in 1999 will now find that they are £3,800 better off than they would have been if they had simply left the money in their current account for the same period of time.

The tax-free benefits mean that people putting money into an ISA in 1999 would have made £16,456.18 in interest over the 12-year period, with current account customers losing almost £4,000 as the result of taxes.

Kevin Mountford, head of banking at MoneySupermarket said: "All savers who pay income tax and don't use an ISA for their savings are throwing money to the tax man and could give their savings pot an additional boost."

It was discovered by the company recently that 47 per cent of people have had to cut down on what they are saving.

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