Investing in ISAs
The limit of how much you can save tax-free has recently increased! From the 6th of October 2009, the annual Individual Savings Account (ISA) allowance rose for anyone born on or before 5 April, 1960. Those under 50 will have to wait until April 2010 until they can benefit.
The annual maximum amount people can save into an ISA increases from £7,200 to £10,200. Half of this can be saved in cash and half in stocks and shares. Each person is only allowed to open one cash ISA and one stocks and shares Isa each year, with the same or different providers.
To invest in a cash ISA, savers must be over 16 years old. This increases to 18 for those hoping to invest in a stocks and shares ISA.
Cash ISAs
When you qualify, the new increased annual limit for a Cash ISA is £5,100 per year.
SAvings bonds.co.uk helps you find the best rates of interest from a range of Cash ISAs through our easy to use best buy tables.
Stocks and Shares ISAs
When you qualify, and have no cash ISA, the new increased annual limit for stocks and shares ISAs is £10,200 per year
Stocks and Shares ISAs are a great way to invest for people in a number of different situations. To find out if they are appropriate for your individual needs, it is sensible to speak to an expert.
Speak to an investment adviser
How will these new limits work?
An individual aged 65 who has not opened an Isa in the tax year 2009-10. From 6 October, 2009, his ISA allowance will be £10,200. Up to £5,100 of his allowance can be saved in a cash Isa with one provider. The remainder of the £10,200 can be invested in a stocks and shares Isa with either the same or another provider. Alternatively, the full £10,200 can be invested in a stocks and shares Isa with one provider.
An individual who is aged 70. who has opened a cash Isa in 2009-10 in which they placed £3,600. From 6 October, 2009, this person will have an Isa allowance of £10,200. They could then save up to another £6,600 in Isas. This could be up to £1,500 in the same cash Isa, or up to £6,600 in a stocks and shares Isa with either the same or another provider, or a combination of both.
An individual's whos 50th birthday falls on 15 March, 2010. He has opened a stocks and shares Isa in 2009-10 in which they has placed £7,200. From 6 October, 2009, they could save up to another £3,000 in Isas. This could be up to £3,000 in the same stocks and shares Isa, or up to £3,000 in a cash Isa with either the same or another provider, or a combination of both.
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