Two Thirds of Adults Have Heard Of ISAs But Over Half Of These Know Nothing More About Them

67% of adults say they have heard of ISAs but, disappointingly, over half of those who have heard of ISAs (57%) say they know nothing about them, according to recent figures released by Marks & Spencer Financial Services (M&SFS). The research carried out by MORI Financial Services for M&SFS is a clear illustration that the education task by ISA providers still has a long way to go.

Commenting on the findings, Jenni Stott, Head of Marketing for Life, Pensions & Investments, for M&SFS said: "This research highlights the growing need for consumer education from providers on ISAs and financial services in general. M&SFS has continued to back the Government in the formation of ISAs, and has always been an advocate of simple, flexible and value for money products. It is clear, however, that there is a long task ahead in gaining and maintaining the trust of the wider range of potential investors. As a result of this learning experience the take up of ISAs is going to be gradual, a process which M&SFS hopes to be an integral part of."

• 33% of adults said they had never heard of ISAs

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• 14% of adults said they would be either definitely or likely to take out an ISA when they become available

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• Half (50%) of those that said they are definitely or likely to take out an ISA, did not know what the differences are between PEPs and ISAs -

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  • 13% of those who said that they would be either definitely or likely to take out an ISA, thought that the difference between PEPs and ISAs was the investment limit

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  • 9% thought there was a difference in tax benefits

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  • 7% thought there was a wider range of investment products e.g. insurance, savings, equities

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• 19% of respondents who are definitely or likely to take out an ISA, said they did understand the differences between Mini and Maxi ISAs, 43% said they did not understand the differences and 38% either did not know, or have not heard of mini or maxi ISAs

Technical details

The report is based on the findings of a survey conducted by MORI Financial Services for Marks & Spencer Financial Services. Interviews were carried out between 19 and 22 February 1999 among a total representative GB sample of 1,845