Failure to use ISA allowances 'costs savers millions'
Many of the 2.6 million Britons who have previously saved in a cash ISA risk missing out on up to £326 million in tax-free interest this year by not using their account's full annual allowance.
New research from moneysupermarket.com showed that of those who have previously set aside money in one of the funds, around 15 per cent have not and do not intend to add to their pot this tax year.
This could cost them around £138 in tax-free interest each, the comparison site said.
Of those planning on making a contribution in 2010-11, more than half (51 per cent) will not use their account's full allowance.
Kevin Mountford, moneysupermarket.com's head of banking, said economic uncertainty and higher living costs are squeezing households' disposable income - and savings "tend to suffer when times are tough".
"However, it is important to try and put some money aside for a rainy day, which can tide you over should your circumstances change," he added.
According to Mr Mountford, savers should have enough set aside to cover at least three months' outgoings to protect them against unexpected loss in income.
In April, the tax-free allowance for cash ISAs rose from £3,600 a year to £5,100 a year.
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