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Smokers could make £21,000 by switching to saving habit

Date: Fri, 27 Feb 04 Analysis

A study has revealed that if smokers invested their cigarette money in an ISA, they would be £20,800 better off in ten years.

Figures from Yorkshire Bank show that instead of paying the government £13,500 in cigarette tax, a 20-a-day smoker could earn an extra £3,870 in tax-free interest - if they place their money in an Individual Savings Account (ISA) instead.

Yorkshire Bank also worked out that if the UK's 12 million smokers all quit and put the money into an ISA this would grow to a "whopping" £124 billion over ten years.

Geoff Greer, head of Yorkshire Bank, said: "The great thing is, if you give up, the equivalent money could be put straight into an ISA and you wouldn't even notice."

"After only a few years you could have saved up enough to buy yourself a real treat such as a dream holiday or even a new car."

Added to the other savings - people with life insurance will also see a benefit on some insurance policies. Yorkshire Bank has worked out that a non-smoker's life insurance premiums are on average 30-55 per cent lower.

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