New ISA limits for those aged 50 and over
The annual investment allowance for those aged 50 and over is £10,200 from 6 October 2009. Up to £5,100 of that allowance can be saved in cash with one provider. The rest can be invested in an investment ISA with either the same or a different provider.
Some providers have decided not to allow this increase until 6 April 2010, when everyone will be able to do it. So make sure you check.
What does this mean for you?
If you are 50 or over you can put more money in both cash and investment ISAs from
6 October 2009. If you turn 50 between 6 October 2009 and 5 April 2010 you can top up any time from
6 October – you don’t have to wait till your 50th birthday.
What do you need to think about?
- You might see marketing from firms encouraging you to make full use of the new limits, or transfer money from cash ISAs into investment ISAs. It is a competitive market, so make sure you understand what will happen to your money and what restrictions there might be.
- Interest rates are low at the moment so the idea of putting more of your money in stocks and shares might appeal. But make sure you understand how your money will be invested.
- If you decide to switch from cash to investments, make sure you are happy with the extra risk and the fact you could lose some of your money.
- Be aware that you can switch from cash to investment ISAs, but not the other way round.
For more information see Cash ISAs and Investment ISAs or see the HM Revenue & Customs website – see Related links.
