UK Money News
5th August 2008
Brits raiding ISA savings
The rising cost of living is forcing Britons to make withdrawals from their Individual Savings Accounts (ISAs), it has been revealed.
In a poll conducted by Abbey it was revealed that 31 per cent of its customers had dipped into their ISA savings to pay for day to day living.
Meanwhile, a further 15 per cent specifically said that higher mortgage repayments and soaring bills had necessitated the raid on their nest egg.
The average sum withdrawn by the account holders stood at £579 each, equating to a total of £6 billion being taken out.
Reza Attar-Zadeh, director of savings and investments at the lender, said he understood the pressure that led consumers to take out the cash but warned that in so doing they could lose out in the long-term.
He explained: "With a cash ISA allowance of £3,600 per tax year any withdrawals made can not be replaced, so that part of your allowance would be lost forever.
"If you're saving towards a goal such as home deposit or looking to maximise the amount of cash you have put away for retirement then the advice must be to try and reduce your outgoings rather than dip into your ISA pot."
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