Banking and Financial News

Isas 'need to be simplified more' - 05/02/2008

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Individual savings account (Isa) simplification could encourage more Britons to save, it has been suggested.

Commenting ahead of changes to the Isa system to be implemented by the government this April, Alliance & Leicester claims the amendments do not go far enough.

Although simplification measures are a "step in the right direction", research from the financial services provider indicates that more could be done to encourage British savers.

Some 71 per cent of people polled by the firm currently hold some form of saving or investment, but 49 per cent use a cash Isa and 27 per cent hold an equity Isa.

Ewan Edwards, head of savings with the organisation, asserts that the initial aim of the Isa was to encourage savers.

"The structure must therefore be straightforward enough for the man on the street to digest and for this reason we have developed a three point plan calling for further Isa simplification and flexibility," he explains.

This plan incorporates simple fund limits, the ability to dip into and top up savings during the tax year and the ability to switch between cash and equities accounts.

A new study from National Savings & Investments suggests that Britons doubt their ability to save.

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