Principality Building Society unveils over-50s ISA

Thursday, 17 September 2009 12:00

Principality Building Society has launched an ISA for savers aged over 50 to enable them to take advantage of their new allowance.

The fixed-rate tax-free savings plans offers interest at 3.8 per cent until June 2012 and will initially allow customers to save up to £3,600.

However, when new rules kick in on October 6th, customers will be allowed to increase their ISA balance to £5,100.

This is thanks to government changes which mean anyone who turns 50 before the end of the ISA year, in April 2010, will qualify for increased limits on the savings plan.

Currently £3,600 is the maximum allowed to be saved in a cash ISA in one year. This will increase to £5,100 for the over-50s.

James Wright, marketing director for Principality, said: "Our systems are in place to allow top-ups from October 6th and this new product allows transfers in, inviting savers that are with providers that do not allow top-ups this October."

The Over-50s ISA does not allow withdrawals until the account matures.

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