More people put money into their savings accounts in July following the launch of New Individual Savings Account (Nisa) rules, according to the British Bankers\u2019 Association (BBA), with savers depositing \u00a34.95bn during the month, almost matching the total for the previous six months. <\/p>\n
The new rules allowing savers to have as much as \u00a315,000 tax-free in a Nisa saving or investment account were announced in the Budget and many people appeared to have waited until last month before paying in their deposits, which is when the new allowance took effect.<\/p>\n
There is normally a big surge in saving into these accounts in April, from the start of the new tax year, but this year savers held back to take advantage of the fresh annual allowance.<\/p>\n
This was evidenced by deposits in April only totalling \u00a33.9bn, compared with \u00a36.3bn in the same month in 2013, and \u00a37.5bn in April 2012. However, savings into such accounts have been decreasing generally, as the low interest rate environment means that people have only been getting a return of 0.86 per cent on these accounts on average.<\/p>\n
That said, there are around 23 million adults in the UK, around half of the adult population, who hold a tax-free Nisa or its predecessor the Individual Savings Account (Isa).<\/p>\n
The BBA hailed the figures as an “encouraging” sign that Britain’s savings culture is being rebuilt. However, critics maintain that banks and building societies have been cutting rates on Isas in anticipation of the extra money they would get as a result of the higher tax-free limit.<\/p>\n
Meanwhile, the average Isa rate has fallen from 1.57 per cent to 1.54 per cent since 1 July and the introduction of Nisas, when only a year ago, the average Isa rate on the market was 1.66 per cent.<\/p>\n","protected":false},"excerpt":{"rendered":"
More people put money into their savings accounts in July following the launch of New Individual Savings Account (Nisa) rules, according to the British Bankers\u2019 Association (BBA), with savers depositing \u00a34.95bn during the month, almost matching the total for the previous six months.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/403"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=403"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/403\/revisions"}],"predecessor-version":[{"id":404,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/403\/revisions\/404"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}