Majority of Scots miss out on Isa benefits

LESS than two-thirds of Scots putting money into savings accounts are taking advantage of tax-free individual savings accounts (Isas).

Research by Nationwide Building Society ahead of the end of the 2009-10 tax year found that 23 per cent of Scots save nothing at all. Of those who do, just 57 per cent use cash Isas, while low awareness means take-up of stocks and shares Isas is also low. While 88 per cent of Scots know what an Isa is, few know their full allowance or can differentiate between cash and equity Isas, said Nationwide.

Across the UK as a whole, just 17 per cent of those over 50 know their allowance is now 10,200, following last October's increase, which comes into force on 6 April for those under 50.