A new cash ISA has been introduced by the Alliance and Leicester, with an interest rate of six percent per annum and a minimum balance of just one pound.
The Easy ISA as it is called allows the usual maximum amount of GBP3,600 in each tax year, with management through either phone or internet. The offer is open to all consumers whether they are existing Alliance and Leicester customers or completely new to the building society.
The Easy ISA name is very apt and will hopefully bring more savers into ISAs where they have previously been put off. As an Alliance and Leicester spokesperson explained, a cash ISA is just like a normal savings account, the difference being that no tax is paid on the amount saved.
According to the Legal and General MoneyMood survey, the people of the UK are changing their habits regarding saving.
Compared with this time last year there are around 6 percent more people saving money now. It appears that consumers are, generally, not spending as much of their money as they once were, preferring instead to build up a buffer should they need the cash for more important things in the future. People are still going out and spending their money, just not quite as much as they used to be.
As a Legal and General savings spokeswoman said, it is good that consumers are managing to change their habits, ensuring they have some money put to one side whilst still being able to enjoy themselves.
The Nationwide Building Society, in its latest results for July, has found that 20 percent of the adult population are not putting any savings aside.
They also found that the number of people saving on a regular basis also fell, down to 46 percent from 54 percent just three months ago. Two thirds of people believe they should be saving according to the Nationwide Building Society, though the key, as with most things, is to do something about it.
A spokesman from the Nationwide Building Society said that consumers appeared to be feeling the pressure being put on them by rising prices but also asked them to at least look at savings vehicles such as ISAs and Childrens Trust Funds. These are tax efficient and so can make a big difference.
