New ISAs will bring new deals

Even though the ISA season this year was not good, savers still look at NISAs as a benefit.

12:23 04 November 2014

Thanks to the announcement the chancellor made in the budget, the new limits have taken effect on new ISA savings accounts. Because of this, savers will now be able to set aside more tax-free money, and enjoy greater flexibility in terms of cash and investments. All tax-free ISAs have become NISAs (New ISAs) and the amount that can be stashed away or invested has increased to £15,000 with effect from July 1st.

 

Roughly, half the adult population in the UK has an ISA. The government has brought about this scheme to support such people at all stages of their lives and ensure they enjoy greater choice and flexibility over how they can access their pot. Savers can now have their allowances in cash or a stocks and shares or a combination of the both. Moreover, for the very first time, any amount of money that is put to a stocks and shares ISAs can be transferred into a cash NISA. In fact, this transfer can be made as many number of times as the saver wishes.

 

It is possible to top up the ISA accounts, which are open since the beginning of the tax year, to £15,000, however one cannot open an additional account. Furthermore, it is possible to top up fixed rate accounts as well. However, different ISA providers have different set of periods when this is allowed. 

 

During the last few months, the average saving rate on offer dropped fairly- on both cash ISAs and fixed- rate ISAs-, thereby minimising the typical potential returns of tax-free saving accounts. However, the mood is still upbeat in the savers community, as they hope that the new limits will bring some new deals, by means of which they can improve their returns and boost their income significantly. Though the ISA season this year has not been fruitful for many savers, they are still optimistic.