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Over 50s take advantage of new ISA limits

Over 50s take advantage of new ISA limits

Category: Savings

Updated: 27/01/2010
First Published: 27/01/2010

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 It is now over 6 months old so the content may be out of date.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 Government's increase to the annual ISA allowance has been welcomed by over 50s, who have markedly enlarged their lump contributions since October.

ISA limits were increased from £7,200 to £10,200 by Alistair Darling last year, and are currently only available to savers aged 50 and over.

Research by Virgin Money has found that lump sump payments increased by 120 per cent between 6 October and 5 January this year.

"The decision by Chancellor Alistair Darling to increase the ISA threshold to £10,200 for the over 50s has been very popular," Grant Bather, spokesman at Virgin Money, said.

It is hoped that ISA sales and contributions will continue to grow as the start of the new tax year draws near.

Last week, Moneyfacts.co.uk revealed that increasing number of lenders have launched new ISA products in recent weeks. It marks an early kick off to ISA season, which usually starts building momentum in mid February.

"With the ISA allowance of £10,200 to be extended to all savers in the new tax year we would urge all investors to consider making the most of the increase in the tax efficient allowance," added Mr. Bather.

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