A study from 2006 showed that the vast majority of Brits were not taking advantage of the tax benefits offered by Maxi Individual Savings Accounts (ISA).

Some 87 per cent of Brits had failed to make the most of their money using an ISA, according to Friends Provident - the FTSE 100 life and pensions company.

It found that although almost three quarters of those surveyed knew ISAs were tax efficient and half believed that ISAs offered better tax advantages than a current account or investing in stocks and shares, many then failed to act upon their better judgement apart from those in the north who took full advantage of their ISA allowance .

Currently almost two-thirds of those aged between 19 and 25 do not own an ISA compared to just over a third of those aged over 55.

Many people were also sketchy on the tax-free limit offered by ISAs with just 21 per cent of women and 35 per cent of men correctly placing it at £7,000.

Christine Foyster, head of investment marketing at Friends Provident, said: "It is important that savers not only put some money away for a rainy day, but also that they make the most of their savings.

"Investing in a maxi ISA will allow you to save £7,000 tax-free every year and has the potential to earn far better returns than deposit accounts over the medium to long term." So, if you'd like to make the most of your tax free savings allowance take a look at some of the best ISA rates on the market.