Increased limit 'makes Isas more worthwhile'

Wednesday, April 14th 2010

Saving money through Isas could become a more attractive option this financial year, due to an increased allowance.

This is according to chartered financial planner for Informed Choice Martin Bamford, who claims this may lead to more money being saved.

Chancellor of the Exchequer Alistair Darling revealed the new £10,200 Isa limit in his Budget last month, which is a rise of £3,000 on the previous allowance.

Mr Bamford said this made investors view this method of saving as more worthwhile.

"Under the new rules, a couple can shelter over £40,000 of their investments from tax within a couple of weeks at the end and start of the tax year," he explained.

However, this does not mean the country as a whole will turn into a nation of savers, he noted.

This is due to the fact that many Britons spend through debt and not real cash, Mr Bamford added.

And the average saver will invest their money at the end of the financial year, rather than spreading it out, he continued.