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New ISA rules see sales soar

New ISA rules see sales soar

Category: Investments

Updated: 04/12/2009
First Published: 02/12/2009

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 It is now over 6 months old so the content may be out of date.

The increased ISA limit for the over 50s has helped ISA sales to hit their highest ever October figure, latest statistics from the Investment Management Association (IMA) have revealed.

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

Gross sales of £965 million also made it the highest month for ISA sales outside the traditional ISA season in March and April, since June 2000.

As well as the impact of the new rules, Richard Eagling, editor of Investment Life & Pensions Moneyfacts, said the recovery in the equity markets would also have played a part in increasing interest in the tax efficient savings vehicle.

"With all ISA investors able to take advantage of the new limits from 6 April 2010, ISA sales should flourish further," he added.

Meanwhile, the IMA also revealed that investors are beginning once again to place their faith in property.

Net retail sales of £367 million made property funds the best selling sector in October and also reached their highest level since May 2007.

In November and December last year, property had been the worst selling sector, as problems in the commercial property market hit investor's confidence.

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