|
Tuesday 6th October 2009
Rise in ISA Limits for over-50's
A change enabling millions of savers aged over 50 to increase the amount deposited in a tax-free Individual Savings Account (Isa) has come in.
The amount people can save in an Isa has now risen from £7,200 to £10,200, of which half can be saved in cash and half in stocks and shares.
The new limit, which was announced in this year's Budget, is for anyone born on or before 5 April 1960.
For everyone else, the limit will rise from 6 April 2010.
"I am determined to help savers, because while low interest rates have helped millions of homeowners, I also know that they have hit those who rely on their savings to get by," said Chancellor Alistair Darling.
Isas were introduced 10 years ago by then-chancellor Gordon Brown in an attempt to encourage UK residents to get into the savings habit.
Now there are about 19 million Isa account holders in the UK, with five million using the full allowance each year.
Investors can open one cash Isa and one stocks and shares Isa each year and various providers are offering different options for those aged 50 and over to top up their existing Isas.
Source: BBC News