Saver numbers 'hit two-year high'

Wednesday, 10 March 2010 10:57

By myfinances.co.uk staff

The number of people who say they are either regular or occasional savers climbed to 80% last month - the highest figure since May 2008, according to a new survey.

Nationwide's Savings Index revealed that 19% of Britons thought it was a good time to be building up a nest egg given the economic conditions, up three per cent from January.

The lender said ISA season hitting full swing appears to have been one of the driving factors behind the rise in saving.

Each year, the accounts help Britons save £680 million in tax, it added.

Andy Hutchinson, Nationwide's head of savings, said: "There are very few opportunities in life to beat the taxman and one of those opportunities is to take out an ISA, so I encourage eligible savers to use their ISA allowance as soon as possible."

The tax-free limit for ISAs currently stands at £7,200 a year, of which £3,600 can be saved in cash, for people under 50.

For the over 50s, the limits were extended last October to £10,200 a year, up to £5,100 of which can be allocated to a cash account.

These new limits will be extended to all savers at the start of the new tax year.

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