'Over £500m wasted by not using Isas'

Britons could waste more than £500 million in taxes this tax year because they are not taking advantage of Isas (individual savings accounts), Nationwide has claimed.

The building society said that more than 60 per cent of the population still do not hold an Isa, while many of those who do have an account do not top it up with funds on a yearly basis.

It estimates that cash Isa holders are failing to top up their accounts by around £35.4 billion this tax year, while equity Isa holders will neglect to put £17.3 billion in accounts.

With the tax year drawing to a close on April 5th, savers are being urged to use their Isa allowances, or the tax savings will be lost forever.

This is a message echoed by Kevin Mountford, head of current accounts and savings at moneysupermarket.com, who said: "With the Isa deadline looming and less than a month left before the end of the tax year people should get their skates on to make the most of this no-brainer savings scheme."

According to the price comparison site, savers who put £250 a month in an Isa between the ages of 25 and 65 could amass a savings pot of nearly £500,000, £354,000 of which would be interest.

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