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Savers want ISAs simplified

Savers want ISAs simplified

Category: Savings

Updated: 19/03/2009
First Published: 19/03/2009

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 It is now over 6 months old so the content may be out of date.

ISAs must be made simpler and more flexible, if more people are to be encouraged into using the tax free savings accounts, it has been suggested

With the Government currently considering how to make ISAs more attractive, over a third of isa savers (35%) have called for any changes to the contribution limits to be kept simple and memorable.

The research from Alliance & Leicester Savings discovered that just 29% of people knew the cash ISA limit is currently £3,600, while even fewer were aware that the stocks and shares limit is £7,200.

To simplify matters further, over half of savers said they'd like to be able to withdraw from and then top up their isa without losing their tax free benefits.

In addition, while savers can currently transfer their cash ISA funds into a stocks and shares isa without using up their allowance, over a quarter of those surveyed said they'd like to be able to transfer their money away from equities and back into cash in the same way.

"In order to encourage people to save tax efficiently, the message is clear: ISAs must be simple and flexible," said Reza Attar-Zadeh, director of savings and investments. "Simpler ISA limits, the ability to be able to dip in and top up and for two way transfers between cash and stocks and shares ISAs will all help."

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