Nationwide reveals rise in saving optimism

itons are taking an increasingly positive view towardstax-free savings that such products offer.
saving money, research from one building societyThe building society goes on to report that two-thirds
shows.of the total ISA business in the savings industry takes
People appear increasingly willing to make use ofplace between February and May, making March a
savings accounts, if a new set of figures are anythingparticularly popular month to make use of such
to by.products. However, with the next financial year now
Data released by Nationwide in its latest Savings Indexunderway consumers may be keen to continue
revealed an overall score of 94 points for March. Notmaking contributions to such products.
only is such a figure three points above that recordedAndy Hutchinson, head of savings for Nationwide,
in the previous month, it is also 15 higher than the tallystates: "Now that the new tax year has started, some
of 79 noted in March 2009.savers' attention will be switched on to saving as early
Such growth appears to be driven by an increasedas possible in an ISA to maximise their tax benefit.
propensity for regular saving, as some 51 per cent ofWith this in mind, it wouldn't be a surprise to me if the
people now claim they are setting cash aside into UKSavings Index rose again in April. There has already
accounts on a regular basis, up three percentagebeen a nine-point increase since January 2010."
points from February. Meanwhile, an increasing numberWith such comments in mind, those keen to make use
of people believe government policy is encouragingof an ISA could be well advised to be aware of how
them to set aside money for a rainy day.much they will be able to place into such accounts.
And having a particular impact on people's opinions onRecent research from Clydesdale and Yorkshire
saving, however, appears to be individual savingBanks showed nine out of ten (89 per cent) Britons
accounts (ISAs). With March the last full monthare unaware of how much they can place in the
consumers had to invest in the account before thetax-free savings products, while one-fifth state they
end of the fiscal year, the building society claims manydid not know they could make regular deposits into
people have focused on making the most of thesuch accounts rather than investing lump sums.