Virgin Money reports increase in Isa contributions

Investors aged over 50 have more than doubled lump sum contributions to share-based individual savings accounts Isas, it has been reported.

According to research conducted by Virgin Money, income funds saw contributions increase by around 130 per cent between October 6th 2009 and January 5th this year.

The firm believes the increased allowance of £10,200 for the over-50s, introduced in the autumn, has been responsible for a strong recovery in Isa sales during 2009-10.

Virgin Money predicted that this trend would continue to be seen up until the end of the tax year.

According to the Investment Management Association, a record net £23.6 billion was invested in retail fund sales in the 11 months to November 30th 2009.

This was more than ten times the amount invested in the same period during 2008.

Lump sum payments made by the over-50s increased by 120 per cent following the change in Isa allowances, Virgin Money claimed.

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2010-02-04 12:56:38 © Moneyextra.com