More than two thirds of Britons (69%) have not managed to use any of their tax-free savings allowance so far this tax year, according to the latest findings from Alliance & Leicester’s wealth tracker index.

The findings show that just 16% of people have invested in an ISA since April. For those who have, the average investment stands at just £456.61, leaving £6,543.39 of their ISA allowance available.

The 2002-3 ISA season was one of the slowest on record, with just half of investors stating in January that they planned to use their ISA allowance. The ‘wealth tracker’ findings indicate that unless people act quickly and make the most of their money over the next few months, they will be missing out on the ability to shelter their savings from tax.

As part of its quarterly study, Alliance & Leicester asked a GB representative sample of 2,000 people how much money they had invested so far in their 2003/4 ISA.

Key findings:

• More than two in three of those interviewed (69%) have failed to invest anything in their ISA so far this tax year. Men were the poorer investors, with 71% claiming they have failed to use any of their tax-free allowance since April 6th, compared to 67% of women.
• 15% of Britons are unsure as to whether they have invested in an ISA so far this year. The research suggests that some women may still be leaving their financial decisions to men, as they were almost twice as likely to be in the dark with their investments (19% vs. 11%).
• Those who have invested in their ISAs this tax year have built up an average of £456.61 within the tax-free wrapper. Men are by far the bigger investors, having put away an average of £507.85 - over £100 more than women’s £403.56.
• Just one per cent of those interviewed are nearing the limit of their Maxi ISA tax-free allowance (£7,000), as their ISA contributions stand at around £6,500. By contrast, the majority of mini-ISA investors are nearing the threshold (£3,000), with an average of £2,500.
• The young have the least saved, with 82% of 16-19 year olds claiming they have not used up any of their ISA allowance as yet this tax year, and nine per cent saying they do not know if they have contributed to an ISA. Those who have used some of their allowance have also invested the least, at an average of £20.76 each.
• People in their fifties are the best savers, with 62% claiming they have not used any of their allowance. However, 19% claim they are unsure. Of those who have invested in an ISA so far this tax year, people in their fifties are investing more than any other age group, but still with an average of only £685.38.

Sarah Whitehead, Product Manager for Investments at Alliance & Leicester said:

“With the end of the tax year fast approaching it is interesting to see that only 16% of the UK population have so far invested in an ISA. ISAs enable people to save up to £7,000 tax efficiently each tax year.”

“The research shows that where people have contributed to an ISA, they have only invested an average of £456. This clearly leaves a large shortfall.”

“Rather than leaving things to the last minute, people should consider avoiding the rush at the tax year end and make the most of their valuable ISA allowance now, ensuring that their hard earned savings are sheltered from the tax-man.”