SAVERS in Hackney have the lowest cash ISA balances in the country, according to a study published last week, indicating that residents are not taking advantage of tax-free accounts.
ISA balances in Hackney are the UK’s lowest. Photo: kennysarmy
Figures published in the Halifax’s ISA savings map reveal that the average ISA balance in Hackney is just £4,760, 39 per cent below the UK average, and nearly £6,000 under the UK’s top area, the Derbyshire Dales.
The study also revealed that women in Hackney have more money deposited in cash ISAs than men. The average amount deposited for a woman is £4,815 compared to £4,595 for a man.
However, Hackney bucks the trend for savers aged 25 – 34 years. Account holders in this age group deposited an average of £2,653 compared to the UK average of £2,433.
Ruth Whitehead, an independent financial advisor who has been based in Hackney for six years, said that the low balances could be explained by the fact that Hackney is a poor borough.
She said: “If you are on benefits it’s very difficult to connect to high-street services and get hold of the right information.
“I see a lot of people who are very frightened of mainstream financial services. They don’t feel they are sophisticated enough, even though everyone should use a cash ISA because they’re tax-free.”
Whitehead said that financial services could seem “patronising” to people who struggled financially and called on high street banks to train staff in dealing with these potential customers more effectively.
According to Whitehead, the balances of accounts held by 25 – 34 year olds are healthier because more young professionals are moving into the borough.
“If you are looking to start a family and can’t afford to live in Islington then you’ll move to Hackney,” she said. “ These people are a bit more assertive and better educated in financial packages on offer.”
The data was collected using balances for Halifax ISA products at the of January 2011.
