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ISA allowance increase nears

ISA allowance increase nears

Category: Savings

Updated: 17/09/2009
First Published: 17/09/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savers over the age of 50 have been urged not miss out on the extra ISA allowance available in a few weeks.

From 6 October, anyone born on or before 5 April 1960 will see their ISA limit rise from £7,200 to £10,200, of which up to £5,100 can be saved in a cash ISA.

The new limit will be applied to anyone younger from the start of the 2010/11 tax year next April.

However, according to research from the Post Office, awareness about ISA limits amongst the over 50s still remains low, thereby increasing the danger that many people will miss a golden opportunity.

Indeed, 62% of those aged 50 and over admitted to not knowing the new limits. Meanwhile, financial pressures means that only one in five plan to make additional contributions to an existing ISA and just one in ten intend to take out a new ISA and the invest the new full allowance.

"It is vital that savers are made aware and make the most of this increase," said Richard Norman, director of savings at the Post Office. "At a time when savers are struggling more than ever, it is important they ensure their money is working as hard as possible for them by taking advantage of their tax free allowances."

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