ISA limit increased

Savers who are looking for the best savings interest rates will be delighted to hear that the ISA yearly allowance has been increased by £480 to £10,680.

The news comes as a shock to many experts who were predicting that the ISA limit would decrease as the government tried to cut the current deficit.

According to Fidelity Investment Managers, savers could be as much as £28,000 better off in the long run with the new increased limit if they invest the full amount each tax year.

Rob Fisher, head of UK personal investments at Fidelity Investment Managers, said: "We have recently carried out some new research which shows that more than 52 per cent of the UK population are saving for financial security but over 42 per cent of the UK population are still not taking up their ISA allowance."

He added that consumers should be looking to take up their full ISA allowance as taxes are set to rise and ISAs provide an all year round tax perk.

The ISA rate was increased to £10,200 for over 50s in October 2009 which resulted in that month's net ISA sales being the highest ever for an October since ISAs began in 1999.
 

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2010-10-21 12:30:04 © Moneyextra.com