ISA’s ignored as bonuses spent as soon as possible

ISA’s ignored as bonuses spent as soon as possible February 20

Filed under ISA News by Isa guides | 0 comments

More than a third of Britons would only consider setting aside their bonuses in savings schemes like ISA’s if they were more than doubled in size, it has been revealed.

What’s more, no matter how large the bonus received almost eight in ten people (79 per cent) have already “mentally spent” the cash before it has even reached their pockets, according to research carried out by Alliance and Leicester.

“It’s amazing that all the hard work that goes into securing a bonus or pay rise can be spent in just an instant,” said Ross Dalzell, Alliance & Leicester’s manager for savings.

“While it is perfectly normal for people to want to treat themselves after receiving a hard-earned bonus, it would make sense to put at least some of it by in a savings account.”

Just one in five people save the extra cash from their pay rise - with only 7 per cent choosing to store it in an ISA.

Mr Dalzell believes bonus earners should try and save now as wages are increasing above the rate of inflation, with ISA’s offering especially good returns.

“Bonuses and pay rises are essentially extra payments which can be put aside without impacting too heavily on your lifestyle,” he said, warming to the theme.

“Moving money into a savings account or cash ISA is easy and hassle free.”

Written Exclusively by AdFero for ISA Guides

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