HSBC sent a message to customers. The bank found that over half of Britons save without paying tax during ISA season, but there is a big difference in how UK adults prepare for their financial future.

The bank found that nearly two in five people do not have an ISA, which means they are losing valuable tax-free allowances. HSBC studied over 1,000 UK adults and found a big difference in ISA use.

The research found that 44% have a cash ISA, which is the most popular. Only 21% have a stocks and shares ISA, even though it can give better long-term returns. 39% do not have any ISA.

Among people with ISAs, most prefer to save cash rather than invest. Nearly half of them only put money into a cash ISA this year.

Only 18% put money only into a stocks and shares ISA, and 12% put money into both, which shows a limited approach to saving.

Even though people can save up to £20,000 per year, few use their full allowance. Only 23% plan to use their full allowance, and on average, people expect to save around £11,330.

The ISA deadline is Sunday, April 5, at 11:59pm.

HSBC found that ISAs are mainly used for cash saving, not long-term investing. Cash ISAs are popular because they are easy to access and seem safe.

22% of people do not know they can have both a cash ISA and a stocks and shares ISA in the same year, which shows a lack of financial knowledge.

HSBC increased the interest rate on its Fixed Rate Cash ISA to 4.5%, and it has a new ISA incentive to encourage people to use their allowance before the deadline.

This means customers can get tax-free interest and a cashback reward. The reward is based on the amount of new money deposited during the offer period.

HSBC has increased rates and has offers.

People who deposit £20,000-£49,999 get £150, those who deposit £50,000-£99,999 get £250, and those who deposit £100,000 or more get £500.

Lloyd Robson from HSBC said that while many people use Cash ISAs, many are missing out on tax-free saving benefits. ISAs can help people build financial stability.

He said that people are not using their full allowance and there is a gap between saving and investing. While cash is important, people should consider other options to help their money grow.

People should take control of their financial future and consider different options to save and invest.