Individual Savings Accounts
Yorkshire are set for the ISA increase
Hemal Mistry, 01 September 2009
Yorkshire Building Society has claimed it is prepared for the imminent arrival of the new ISA limit.
The scheme that permits the user of the account deposit £10,200 rather than £7,200 previously allowed and for cash ISAs the threshold has been lifted from £3,600 to £5,100.
The introduction of the added allowance is due for 6 October, however it is only available for those who are 50 on 5 April 2010 or before – under the Chancellor Alistair Darling decision to increase the limit.
Sarah Lawrence, Senior Product Manager for savings at Yorkshire Building Society, says, “It's great news for anyone in this age category.
“ With 70 per cent of our ISA savers set to gain from this new limit in this tax year we expect to be very busy and wanted to make sure we were ready in plenty of time so that everyone can benefit from this timely savings incentive from the Chancellor.”
The allowance has expanded to give the consumer the opportunity to hold cash or funds without paying tax on capital gains or interest.
There is a sense of optimism as this is only the second time the ISA limit has been raised by Labour since the launch in 1999, and it is available to all ISA savers from 6 April 2010.
It is predicted that the introduction of this new scheme will eventually benefit five million consumers who currently utilise their allowances.
Lucy Cooke, senior press officer for Yorkshire Building society, says, “This is a positive piece of news, rather than a negative one.
She added that despite the reports in the media claiming that the Chancellor could have increased the limit further, it is a start regarding ISAs certainly a good start from Alistair Darling.
Yorkshire Building Society is set for the launch of the limit change with all frontline staff and literature letting the 50 plus age group a chance to take advantage of this opportunity.
Sarah Lawrence says, "We also thought it was important to ensure all our ISA accounts could accept the increased allowance as soon as it came into effect, which is why we are taking the unusual step of allowing top-ups into fixed rate accounts. Some savers in other providers' fixed rate ISAs may not be so lucky and may have to wait until the next tax year to benefit from the additional tax-free savings limit."
The Yorkshire has recently launched a new 3% fixed rate ISA and its instant access Monthly Reward ISA at 2.25%, which has proved to be very popular with savers of all age groups.
Advertisement
Free Magazine: How To Invest For Income
Free Magazine: How To Invest For Income In this free edition of MarketViews, Peter Temple highlights key features that can make income-based investing generate such good results. Get your free copy here
Free Guide: 8 Common Trading Indicators
Get this free guide to find out how to use technical indicators to give you a sense of what the market will do next. Get your free copy here.
No hassle and no admin fees. Open an account now with The Share Centre. Find out more.
A free guide to Gold Investment
Physical Gold protects against global economic downturn by providing crucial portfolio balance. You can buy gold bars for your UK pension and receive up to 40% price discount via tax relief. Buy tax-free gold coins as an alternative to poor interest rates. Find out more and download this free guide to gold investment.
The TaxGuide.co.uk has a wealth of tips and advice from working out your tax bill, through to the latest personal tax rules. Get your personal tax tips today.
FREE Report: Inside Investment Trusts
Written by the team behind What Investment, this exclusive FREE report covers:
- Why Investment Trusts are better than Unit Trusts
- How new legislation is broadening the appeal of Investment Trusts
- Where to look for buying opportunities
- Why now is the time to buy Investment Trusts
- The Investment Trusts to invest in at the moment


Comments
Please register or login to comment on this article.