Many people are failing to make the most of their tax-free savings allowance, according to new figures from Nationwide.

It said that with less than one week to go before the current tax year comes to an end, now is the perfect opportunity to make the most of an ISA.

Andy Hutchinson, Nationwide's head of savings, said: "Our new research has provided us with a better understanding of the savings habits of savers around the UK and, in particular, how people are using their ISA allowance.

"There are very few opportunities in life to ‘beat the tax system' but saving or investing in an ISA allows you to do just that, which is why I believe every adult in the UK should consider having one."

Of those questioned across the UK, 27 per cent identified that they do not save anything at all, while only 56 per cent of those who do make the most of a cash ISA.

Furthermore, 30 per cent do not know what a stocks and shares ISA is and how they should invest in one.

The chancellor revealed in last week's Budget that the ISA allowance is to increase, meaning people can make even more out of their money.

As of next month, £10,200 can be saved from taxation, meaning it can be spread between a cash ISA and a stocks and shares product.

This allowance is also set to continue to rise in line with inflation.

Mr Hutchinson commented: "If you are interested in taking advantage of this year's ISA allowance, I encourage you to do so as soon as possible to avoid disappointment."

He said that in light of the research conducted by Nationwide, it can be seen that there is not enough awareness and take up of tax-free savings.