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.