'Make the most' of ISA allowances

Individuals looking for the best savings rates in possession of individual savings accounts ISAs should make the most of their allowance before the end of the tax year.

This is the recommendation from the Fair Investment Company's Rachel Mason, who wrote on Reuters' The Great Debate blog that the current limit for people aged under 50 is £7,200.

Of this, £3,000 can be invested into a cash ISA, while the rest can be invested in stocks and shares.

For the over-50s, however, the limit is £10,299, £5,100 of which can be invested in a cash ISA

"If you haven't used your allowance, now is the time to do it, especially as Easter falling early means the last working day of the tax year is actually April 1st," Ms Mason wrote on the news provider's blog.

She went on to recommended looking at the different types of stocks and shares ISAs because cash rates are "pretty awful".

According to HM Revenue & Customs, 2,922 stocks and shares ISA during 2008-09, compared to 11,299 cash ISAs.

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2010-02-24 08:13:48 © Moneyextra.com