A Long Way To Go On ISA Awareness

Half the population is unaware that changes will be taking place to the TESSA and PEP regime, and fewer than half have heard of the ISA, or Individual Savings Accounts, according to research undertaken for the BSA by MORI in November.

The detailed figures show that 47% of a sample of 2,329 adults across the United Kingdom were able to answer "yes" to the researchers question "Are you aware of any change to Government backed savings schemes such as PEPs and TESSAs?" There was however a huge difference in the level of knowledge according to respondents' social group. In social group AB (professionals and managers) 74% were aware that changes were taking place. In social group DE (manual workers and the "economically inactive") the figure was just 25%. Among tenants of local authorities and housing associations (525 adults sampled) 17% were aware that changes were on their way; for owner-occupies (1,648 adults sampled) the figure was 58%. Awareness of change was greatest in the South East (excluding London) at 57% (380 adults sampled) and South West England at 59% (181 adults sampled). In Northern Ireland 37% of the 222 adults in the sample were aware of impending change.

A very similar story is told when it comes to specific awareness of the ISA. 43% of adults were able to answer "yes" to the question "Have you heard of individual savings accounts or ISAs or not?" In social group AB there was 71% of awareness of the ISA, but this fell to 23% in social group DE. Among local authority and housing association tenants awareness of ISAs stood at just 16%.

Of those people aware of the ISA (991 adults in the sample), 14% had already decided to open an account, 17% were undecided. A further 5% said their decision would depend on the exact details of ISA accounts, and 3% said it depended on whether they had the money available. Over half (55%) of those aware of the ISA, did not plan to take one out. Overall the figures suggest that 6% of all adults in the UK (equivalent to more than 2.5 million people) currently intend to take out an ISA. This figure compares with 15% of all adults who currently have a PEP (which was introduced over ten years ago) and 13% with a TESSA (eight years old).

Commenting on the data, Adrian Coles, BSA Director-General said:

The government, and financial institutions clearly have some way to go to raise awareness of the ISA, especially among those groups that might be contemplating saving for the first time. Nevertheless over 2.5 million people intend to open an ISA and this gives the new ISA market a good base from which to develop.

Technical details

MORI interviewed a quota sample of 2,329 adults aged 16+ face-to-face and in-home. Interviewing was conducted between 23 October - 2 December 1998 over 286 sampling points throughout the UK.