Savers celebrate ISA limit increase - Savings - News - Moneyfacts


Savers celebrate ISA limit increase

Savers celebrate ISA limit increase

Category: Savings

Updated: 22/04/2009
First Published: 22/04/2009

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 It is now over 6 months old so the content may be out of date.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 have been given a Budget boost with the news that the annual ISA limit will increase to £10,200, up from the current limit of £7,200. Chancellor Alistair Darling also revealed that the amount allowed to be invested into the cash element of the tax-free investment vehicle will be increased from its present level of £3,600 to £5,100.

The new allowances will come into effect for those over 50 in the current tax year, although the first deposits will not be permitted until 6 October. The higher limits will then apply to everyone else from 6 April next year.

"Today's decision to increase ISA allowances will be welcome news to savers who have seen their returns reduced significantly following a succession of base rate cuts," said Flavia Palacios Umana, head of Halifax Savings products.

"Now is a challenging time for savers, especially for pensioners who rely on returns to supplement their monthly income, and we are fully behind this move by the Chancellor to help savers make more of their money in this historic low rate environment."

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 Any products featured may be withdrawn by their provider or changed at any time.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

Best savings rates

Get a snapshot of the top best buy savings accounts, fixed rate bonds and cash ISAs to help you get more from your money.

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.