Living Expenses Met By Savings

The Abbey National has found that the savings built up by people are sometimes used to meet the basic living expenses that have risen so much recently.

The study carried out by the Abbey National was looking at cash ISAs, finding an astonishing six billion pounds had been taken out of them in the last year. When they asked why the funds had been withdrawn nearly a third of people said it was to meet day to day living expenses.

An Abbey National representative, commenting on the findings, said that they fully understood the pressures being faced by people at the moment but wanted to remind them that, if the full annual allowance had been paid in to a cash ISA then no more could be paid into it in the financial year, leaving people with less interest.