ISA allowance increase nears - Savings - News - Moneyfacts


ISA allowance increase nears

ISA allowance increase nears

Category: Savings

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

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 It is now over 6 months old so the content may be out of date.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."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Average five-year fixed bond rate falls below 2%

Long-term fixed rate bonds used to be the top solution for savers looking to get a decent return on their savings, but unfortunately, times have changed, with our latest data revealing that the average five-year rate has fallen to a new record low.

Savings rates plummet to fresh lows yet again

It’s becoming a recurring theme, and unfortunately, it’s showing no signs of stopping. Savings rates have plummeted to fresh lows once again as the impact of the base rate cut continues – and this month, product availability has followed.

Less than half of savings accounts beat inflation

Official figures show that inflation jumped up during September, with CPI rising to 1%. Not only does this mean that consumers may begin to feel the impact on their wallets, but there are now far fewer savings accounts that will beat inflation.