One in five (20%) individuals have said they are not using ISAs as they do not want to lock away their money, CMC Invest has found.

Research conducted by the UK investment platform revealed that 62% of the 5,000 people surveyed said they are in the dark about a potential solution, such as a flexible stocks and shares ISA.

This product allows individuals to deposit, withdraw and replace funds in the same tax year without impacting their annual ISA allowance.

CMC Invest said that the flexible stocks and shares ISA is "something of an unknown gem", in part due to not all providers offering it.

Investment operations manager at CMC Invest and head of CMC Group’s ISA governance committee, Jason Law, said: "With the new tax year approaching, it’s a very busy time for people making decisions about their ISAs and tax-efficient investing. It’s concerning, therefore, to hear that many people aren’t opening an ISA due to a misguided notion that doing so will remove flexibility.

"The flexible ISA first became available in 2016. The lack of awareness around it underscores a crucial gap in financial education, which could be preventing people from taking advantage of tax-efficient investing."

"Our survey findings emphasise that the industry needs to address consumer concerns that could be preventing people from utilising ISAs. We must be providing jargon-free education to support people when making informed financial decisions about how to invest their money."

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