Millions of British couples are paying more tax than they need to on their joint savings accounts, according to new figures.
One in ten couples – 2.5 million Brits – fall into this trap by keeping the majority of their investments solely in the name of the partner paying the most income tax, Abbey Savings says.
A further 3.8 million couples could be paying over the odds by having joint accounts when one partner is a lower or nil rate tax payer, which may hinder their debt management abilities.
The organisation is urging Brits with joint savings accounts to make the most of their money by putting most of their cash in the name of the lower tax payer, who will pay half the rate of income tax on any savings.
"Savers need to be savvy when it comes to the tax they pay on their savings," comments Reza Attar-Zadeh, director of savings and investments at Abbey.
There is no point wasting money by unnecessarily paying too much tax on savings, the expert continues, calling on savers to look into their tax bands and distribute their money accordingly.
Last month, Abbey suggested that Brits put aside an average of £163 each month.
Its figures showed that men save more than women and overall people are saving less than they were a year ago.