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'Top up Tuesday' brings new ISA products

'Top up Tuesday' brings new ISA products

Category: Savings

Updated: 06/10/2009
First Published: 06/10/2009

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 It is now over 6 months old so the content may be out of date.

A number of providers have launched new over 50s ISA products to coincide with the introduction of the Government's new limits on the accounts.

First unveiled in Alastair Darling's Budget back in April, savers aged 50 or over will be able to top up their pensions to the tune of £3,000, which will be split between cash and stocks and shares.

Those born after 6 April 1960 will have to wait until the new financial year to increase their allowance from £7,200 to £10,200.

Speaking to Moneyfacts.co.uk, Rob Fisher, head of personal investments at Fidelity International, said: "The Government deserves some praise for raising the limits. They've helped put ISAs, which have become a bit of a forgotten gem, back on the map."

Providers have been quick to confirm that they will be accepting top ups, with many going further by launching new ISAs.

Chelsea Building Society, Nationwide, Saga and West Bromwich Building Society have all launched new products that are aimed at older savers today, while Principality Building Society did the same towards the end of last month.

It has been estimated that investors will save themselves some £85 million in tax over the next few years as a result of the enlarged ISA limits.

Mr. Fisher said that some critics, who have said the changes have not gone far enough, had been 'pretty churlish'. "Any increased is to be welcomed, as it's not often that such a large tax give away is announced, especially at a time when public finances are under pressure.

"A couple can now put away £20,000 a year tax free – that's quite a generous amount."

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 Any products featured may be withdrawn by their provider or changed at any time.