ISA contributions 'rise 66%'
By myfinances.co.uk staff
ISA contributions for 2009-10 are 66% higher than they were at the same point a year ago, according to a new report.
Barclays Stockbrokers said the accounts were proving particularly popular with the over-50s after the government increased the annual tax-free limits for this age group in October.
The company found that 48% of those eligible for this new allowance had already used the full amount. A further 21 per cent said they plan on making additional contributions to their account before the end of the tax year.
Chancellor Alistair Darling announced in last year's Budget that from October, the annual allowance for ISAs would rise from £7,200 to £10,200, of which up to £5,100 could be saved in a cash account.
These limits will be available to all ISA savers from the start of the new tax year in April.
Barclays Stockbrokers head of investments Barbara-Ann King said: "It is encouraging that all investors are continuing to shelter their savings in ISAs and in particular that the over-50s have actively taken advantage of their increased tax-free allowance."
Clydesdale and Yorkshire banks recently forecast that 2009-10 will see annual ISA investment top £40 billion for the first time.
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