THERE is considerable lack of awareness among the British population about ISA products, particularly the Innovative Finance ISA (IFISA), research shows.
A survey of 1,000 adults by Oaksmore ISA found 16 per cent of savers were not aware of any type of ISA.
Three quarters (75 per cent) said they knew about traditional cash ISAs, but only six per cent were aware of the IFISA, which is a tax wrapper around debt-based securities including peer-to-peer loans.
Less than half (40 per cent) were familiar with stocks and shares ISAs, 31 per cent were aware of Help to Buy ISAs and 24 per cent were acquainted with Lifetime ISAs.
The lack of awareness helps to explain why 22 per cent of Brits said they were reluctant to invest their personal savings, with 61 per cent having savings of over £1,000.
Reuben Skelton at Oaksmore, an IFISA provider, argued that IFISAs offer some of the most innovative and rewarding ways to invest.
Of the 38 per cent of Brits with savings of up to £5,000, 76 per cent said they would be willing to consider peer-to-peer investments when they were made aware of them.
“Such products can also offer huge social benefits, for example helping to support growing businesses, major infrastructure projects or much-needed investment in local communities,” Skelton said.