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ISA increase welcomed

ISA increase welcomed
Date of Publication: Thursday, 25 March 2010 00:00

The ISA allowance increase revealed in the Budget has been welcomed by HSBC and Lloyds.

The ISA allowance increase has been welcomed by banks.

Alistair Darling confirmed in this week's Budget that savers would be able to save a total of at least £10,200 in ISA accounts in the next financial year.

Half of this figure - £5,100 - can be stowed away in cash ISAs - and the announcement was commended by several banks including HSBC and Lloyds.

However, the tax-free savings allowance will now be inline with inflation and thus HSBC estimate that in 2011-12 savers will be permitted to save up to £10,400 through this method.

This predicted increase is based around an estimated inflation rate of two per cent per cent.

David Wells, HSBC head of investments, savings and pensions, said: "The increase in ISA limits this year and over the coming years will give savers the potential to put aside a significant tax efficient nest-egg".

Previously, Clydesdale and Yorkshire Banks had warned savers not to wait until the last minute to top-up their tax-free savings for this financial year as they risk missing out because the deadline falls over the Easter weekend.

By Nate SawyerADNFCR-2079-ID-19688864-ADNFCR
Thursday, 25 March 2010 00:00
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Top 5 ISAs

Provider
AER
Notice
Min Deposit
Max Deposit
Apply
View Full Table >
2.60%
Fixed term for 5 years
£15,000
£1,000,000
2.30%
Fixed term for 3 years
£15,000
£1,000,000
2.00%
Fixed term for 2 years
£15,000
£1,000,000
1.25%
35 Days
£10,000
£1,000,000

SBI UK Online Cash ISA 3 Year Fixed Deposit

  • Minimum amount which can be deposited in Cash ISA fixed deposit is £15,000(including Transfer In)
  • Account managed online or by visiting our branch
  • Interest paid on a monthly basis
  • Debit card provided only to the primary account holder if requested
  • Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes and has a permanent UK address
  • YOUR SAVINGS ARE PROTECTED UP TO £75,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

SBI UK Online Cash ISA 2 Year Fixed Deposit

  • Minimum amount which can be deposited in Cash ISA fixed deposit is £15,000(including Transfer In)
  • Account managed online or by visiting our branch
  • Interest paid on a monthly basis
  • Debit card provided only to the primary account holder if requested
  • Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes and has a permanent UK address
  • YOUR SAVINGS ARE PROTECTED UP TO £75,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

SBI UK Online Cash ISA 5 Year Fixed Deposit

  • Minimum amount which can be deposited in Cash ISA fixed deposit is £15,000(including Transfer In)
  • Account managed online or by visiting our branch
  • Interest paid on a monthly basis
  • Debit card provided only to the primary account holder if requested
  • Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes and has a permanent UK address
  • YOUR SAVINGS ARE PROTECTED UP TO £75,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Bank of Cyprus UK 35 Day Notice ISA

Bank of Cyprus UK
  • Available for new subscriptions up to £15,240 for the current tax year or transfers from other ISA providers
  • Interest is paid annually into your Cash ISA
  • Access to funds subject to 35 days notice
  • Available to individual applicants aged 16 or over
  • Eligible deposits are protected up to £75,000 by the UK Financial Services Compensation Scheme