Two thirds of those eligible for the new ISA allowance intend to contribute up to the full £10,200 limit, finds Barclays Stockbrokers.

As new limits on ISAs (Individual Savings Accounts) come into force, making them even more attractive vehicles for savings, investors continue to appreciate their importance and intend to maximise this tax benefit.
With new limits being introduced today (6 October 2009) for over 50s, research has found two thirds (63 per cent) of those eligible, intend to contribute up to the full increased £10,200 limit.  

Barclays Stockbrokers clients are also confident of the potential returns from equities with two thirds of those planning to increase their allocation to stocks and shares and just 13 per cent planning to increase their cash investments.  One in eight are remaining cautious and will invest depending on the volatility of the markets and 9 per cent believe their decision will depend on savings rates.  

Barbara-Ann King, head of investments at Barclays Stockbrokers, says, ‘It is clear our ISA investors are keen to make the most of the increased ISA allowances and take full advantage of the tax free benefits. This means that our clients are able to move more meaningful amounts outside the tax net, and of course the ISA allowances only limit the contributions that can be made and not the potential returns with no capital gains or income tax payable on any growth within an ISA.

‘In investment markets that remain volatile, investors need access to a wide range of products to allow them to capitalise on opportunities as they arise. Through investing in Barclays Stockbrokers Investment ISAs, our clients are in complete control of their investment decisions. As well as stocks and shares, gilts and bonds, investors can also consider funds, Exchange Traded Funds (ETFs), Exchange Traded Commodities (ETCs), Real Estate Investment Trusts (REITs) and structured products to form part of their portfolios. It really is your ISA, your way.’

Further reading:
Top shares for your ISA
Unusual ISA ideas
Yorkshire BS are set for the ISA increase