Saga reveals keenness to save into ISAs

Over-50s are keen to make use of the increased savings allowance on hand with individual saving accounts (ISAs).

Significant numbers of older Britons are taking advantage of the increasing saving limits on hand with individual saving accounts (ISAs).

As those over the age of 50 have been able to place up to £5,100 into cash ISAs and £10,200 into an investment account since last October, Saga Personal Finance reports 37 per cent of such people have topped up their saving pots.

And with the new tax year starting next month, 41 per cent of over-50s are keen to make full use of the increased allowance limits on the UK accounts in 2010-11.

However, this propensity to save rises to 46 per cent among those living in London.

Saga executive chairman Andrew Goodsell says: "With low interest rates it is important that people make their money work hard for them, I am pleased to see that savvy over-50s are making the most of the increased ISA limits."

And similar sentiments were recorded in a Barclays Stockbrokers study, which showed 77 per cent of over-50s with a stocks and shares-based ISAs have taken or are looking to take advantage of their increased tax-free saving allowance before the end of the current tax year.

By Emma North