As planners make their final checks and changes before 5 April, Lloyds TSB has found over half of savers have not yet used up their full Isa allowance.

The maximum that can be saved in a cash Isa is £5,340 but the firm found 55 per cent of Isa savers had saved less than this.

Some 85 per cent believe it was unlikely they would utilise the allowance before the deadline.

Those living in the North West were most likely to have saved the full amount by the deadline while those in the Midlands or in Scotland were least likely.

Of those who did not save the full amount, 24 per cent blamed not saving regularly throughout the year and 34 per cent said they had not been able to save at all.

Some 77 per cent said they would rather pay off outstanding debts before they put money into a savings account.

Greg Coughlan, head of savings at Lloyds TSB, said: “At a time when spending is being squeezed, and many consumers feel they cannot afford to save, it has never been more important that every penny squirreled away in savings is working as hard as it can. Tax free Isa accounts should always be the first port of call for anyone looking to save.”

These findings echo research by Santander which found that the average amount people were likely to invest in an Isa was £1,883, over £3,000 less than the maximum allowance.

The allowance will be increased by £300 next tax year to £5,640 in line with inflation.