Older savers take advantage of ISA threshold increase

Thu, 28 Jan 2010

The government's decision to increase the Individual Savings Accounts (ISAs) allowance for over-50s has influenced the age group's propensity to use the wrapper as a savings vehicle, it has been revealed.

On October 6th 2009, the ISA allowance for over-50s was raised from £7,200 to £10,200 for the tax year.

According to research conducted by Virgin Money, this prompted an ISA take-up rush, with over-50s boosting their lump-sum payments by 120 per cent from October 6th 2009 to January 5th 2010.

"The decision by chancellor Alistair Darling to increase the ISA threshold to £10,200 for the over 50s has been very popular," confirmed Virgin Money spokesperson Grant Bather.

"With the ISA allowance of £10,200 to be extended to all savers in the new tax year we would urge all investors to consider making the most of the increase in the tax efficient allowance."

A number of new ISA products have been launched since the start of the year, including offerings from Alliance and Leicester, Birmingham Midshires, Chelsea Building Society, Leeds Building Society, the Post Office and Santander .
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