ISAs & PEPs news
Savers 'put off by complicated ISAs'
5 March, 2007
Thousands of Brits are not benefiting from ISAs because they are put off by how complicated they are, according to one investment broker.
This month is one of the busiest for those who are looking to store up their cash, with many rushing to up their tax-free investing allowance by the end of the tax year.
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But Hargreaves Lansdown says that if the tax-free accounts were made easier to understand they would be used by many more people.
Senior analyst at the firm Meera Patel said that she hopes the government's plans for April 2008, which will aim to make ISA's easier to understand, will encourage people to invest more money.
She added: "From Hargreaves Landsdown's point of view we are seeing increasing amounts of sales in terms of people trying to use up their ISA allowance – but it's nothing compared to what the rest of the population should be doing.
"I think the main problem is the fact that PEPs and ISAs aren't necessarily friendly products. I think there is a lack of understanding from consumers as to how they work."
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