Abbey: Invest a lump sum to maximise ISA returns

Savvy savers should invest as much as possible in their individual savings account (ISA) to maximise their interest payments for the year, Abbey Savings said this week.

Last year, only a third of savers earned the maximum possible interest by depositing all their savings in a lump sum at the beginning of the tax year.

Abbey also revealed that one in seven (14%) ISA savers are celebrating the ten year birthday of their ISA, having opened their account when ISAs first launched a decade ago.

However, 28% of savers have yet to decide on whether to start a cash ISA for this tax year.

Reza Attar-Zadeh, Abbey’s director of savings and investments, said: “In the current climate, every penny counts so making your savings work hard for you all year round is crucial.

“The new tax year is now here and the sooner an ISA is funded, the greater the return on the money saved.”

Abbey’s Reward ISA currently offers a variable instant access rate of 1.5%, with a 2% bonus of the savings are untouched for twelve months.

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