Change to ISA limit to boost savers
03 September 2009 16:52:32
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| Alistair Darling's policy comes into effect next month. |
"Many" transfers-in from over-50s customers are expected at the firm when the annual tax-free cash savings threshold rises from £3,600 to £5,100 on October 6th.
Only those born on or before April 5th 1960 are allowed to gain access to the higher limit, while the Financial Services Authority has also empowered banks to decide whether or not they let older customers have the extra tax-free allowance this year.
From next April, savers in all other age groups will gain mandatory access to the £5,100 limit.
Kim Rebecchi, director of sales and marketing at the Leeds Building Society, said: "We expect many ISA customers, who currently have their tax-free savings with other providers who are not accepting this additional allowance, to transfer to the society."
The increase to the ISA allowance was first announced in April's Budget by Alistair Darling.
According to the chancellor of the exchequer, the decision to make the higher limits available to over-50s first would provide extra help for those who have either "retired or are beginning to prepare for retirement".
Other recent regulatory moves relating to savers include the raising of the compensation threshold, below which all deposits are refunded to customers by the Financial Services Compensation Scheme, from £35,000 to £50,000 per account.
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