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Use this year’s ISA allowance, savers urged

Use this year’s ISA allowance, savers urged

Category: Savings

Updated: 12/04/2012
First Published: 17/03/2010

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 It is now over 6 months old so the content may be out of date.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 are being urged to make the most of their 2009/10 ISA allowance which is to expire in just three weeks time.

The current tax year will expire on 5 April, until when savers can still shelter up to £7,200 in a tax free ISA, with a maximum of £3,600 in cash.

From 6 April, isa limits will be universally enlarged to £10,200, with cash entitlements climbing to £5,100. They have been available to savers aged 50 or over since October.

However, just 50 per cent of all savers in the UK have a cash ISA, according to HSBC, meaning consumers are paying £9 billion more in tax than they need to.

"In a very low interest rate environment, using the government's ISA scheme can be a great way to boost your savings," commented David Wells, head of savings, investments and pensions.

"I would recommend anyone over the age of 16 who has not yet taken out a cash ISA to do so before the end of the tax year on 5 April."

Having been launched over ten years ago, ISA savers that have saved their full annual ISA contribution each year would have over £40,000 invested.

However, average ISA savings are relatively low with those in the South East having the largest tax free balances at £6,876, followed by Northern Ireland (£6,806) and the East Midlands (£6,654).

What next

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 Any products featured may be withdrawn by their provider or changed at any time.

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