Hikes in ISA limits result from budget

It was announced at the recent budget by Alistair Darling, the Chancellor, that ISA limits in the UK were being hikes, although savers will not see the benefits straight away. Read more

Tags: cash isas, isa limit, investment, added incentive, interest rates, ISA, individual savings account, society

Savings rates continue to tumble

The base interest cuts that have been applied by the Bank of England over the past few months have been welcomed by many borrowers and industries, and for many homeowners and borrowers the base rate cuts have left them with far more money in their pocket each month as a result in a drop in repayments. Read more

Tags: action, ISA, account, bank of england, Mortgage loan, savings rates

Up to 50% of Isa investors are contemplating self-select

More than half of Individual savings account (Isa) investors prefer to make their own decisions when it comes to investing, a new study has shown.

The results from Barclays’ survey reveal that ten per cent of investors would like to be more involved in their Isa.

Meanwhile, a third of Isa investors have opted for self-select and a further 24 per cent are thinking about taking one out.

Tom Ryan, director at Barclays Stockbrokers, said: “Self-select Isas have empowered investors, giving them the freedom to make their own decisions and to take control of their investments.”

The added attraction with the product lies with the option it provides to buy and sell when the consumers prefers, he added.

Up to 75 per cent of investors said they were attracted to self-select Isas because they like to make their own decisions.

From April 6th, new updated charges will come into effect for all Isa accounts for the 2008-09 tax year.

Tags: ISAs, Barclays Stockbrokers, barclays, cent, Self-select, new study, investors, ISA

New Isa rules need to be publicised more

More should be done to publicise the changes to the rules surrounding individual savings accounts (Isas), one financial expert has claimed.

According to Moneyfacts, the introduction of changes to the rules in the new tax year from April 6th, which are anticipated to attract more customers to the product, need to be more widely publicised outside of the trade press.

Michelle Slade, spokesperson for Moneyfacts, said: “They probably should do something more to advise customers out there what is going on.”

“The fact that they can now put in an additional £600 and it’s tax free… Obviously that’s the first port of call for anybody who’s going to take out savings,” she added.

In the new tax year, beginning April 6th, the rules for Isas are changing. There will no longer be distinctions between mini- and maxi-Isas:

Now all Isas will have an overall limit of £7,200, of which £3,600 can be saved in cash (under present rules there is a £3,000 cash limit).

Tags: Rob Fisher, press, ISA, introduction, product, spokesperson, tax

Consumers ‘confused’ by Isas

Over 40 per cent of consumers do not know what the current limit is on their Isa according to research from financial experts.

Findings from the Alliance & Leicester also revealed that almost 80 per cent of do not know what the maximum limit is for equity Isas.

Ewan Edwards, head of savings at Alliance & Leicester, said that the study shows that, with the new rules surrounding Isas arriving in April, many consumers are still confused by the current regulations in place.

“We feel that more could be done to communicate the basic principles and benefits of Isas, so that everyone is clear about how they work and how to get the most out of them,” he added.

The “structure must be more straightforward” if they are to appeal more to the man on the street, he concluded.

According to Moneyfacts.co.uk, changes to Isas from April 6th involve increasing the the annual contribution to £7,200 while the maximum cash element is also set to increase from £3,000 to £3,600.

Tags: edwards, ISAs, ISA, leicester, maximum limit, equity, bank of england

Isas to be ‘increasingly’ popular

The growing popularity of individual savings accounts (Isas) in the past few years is a continuing trend, an industry expert has said.

According to Michael Brill, director of Baronworth Investment Services, people are increasingly putting their equity into Isas as traditional banking methods become more risky and less attractive.

He said: “If you go into a cash Isa then it is very safe. In a deposit account, one would have thought it is the safest you can get.

“If someone wants to make sure their money is saved and they are not playing with the stock market it is an excellent way to save tax free money and a lot of people are doing it.”

He added that, in the most part, cash Isas are “very flexible”, with consumers advised to select one that best suits them.

HM Revenue and Customs released figures this month showing the amount of money invested in Isas, which now stands at an impressive £208 billion.

Tags: ISA, michael brill, market, Business Finance, stock, way

ISA reforms to allow customers to “mix and match”

Proposed government reforms to ISAs will encourage more people to save, financial experts said today.

A director at Tax Incentivised Savings Association (TISA), a trade association representing the financial services industry, added that customers would now be able to “mix and match” their ISAs, under the reforms announced last month.

The government will set new limits for cash ISAs at £3,600 and stocks and shares ISAs at £7,200, effective from next April.

Peter Shipp, technical director of TISA, said: “If [customers] have a cash ISA with the bank or building society and they have a stocks and shares ISA with another firm, they can mix and match as long as they don’t go over £7,200 overall.”

He recommended that savers take out ISAs, as they “encourage…people to save” and that people “will get their interest without a deduction of tax” by using them, unlike ordinary savings accounts which deduct the basic rate.

Stocks and shares ISAs were also a good way of avoiding capital gains tax if shares go up, he added.

Around 18 million Britons currently hold ISAs, with Mr Shipp confirming that latest statistics showed uptake levels at their “highest ever”.

Tags: building, ISAs, cash, director, government reforms

February increases saving mood

We all begin February with a good financial attitude, a desire to carry out sensible banking and a mood to save.

That is according to Legal & General which has published its Money Mood Survey for 2007.

In it, the firm tries to gauge the mood of the nation when it comes to saving and 2007 has proved to be the third year of growth.

According to Legal & General, 64 per cent of British adults were in the mood to save at the end of February.

This signals a rise of eight per cent compared to the same period in 2005. In addition, the mood to spend has fallen.

The study claims that 2007 saw the lowest mood to spend in February figures ever, with just 24 per cent of adults wanting to splash the cash.

“These latest figures show the Money Mood of the nation is firmly in save mode as we enter the Isa market this year,” remarked Claire Stacey, director of Legal & General.

“Money Mood also found that the percentage of households who said they have money to spend after paying bills and debt payments has not changed over the three years.

“That’s good news as it shows that the majority of households (58 per cent) are in a position to save rather than struggling to make ends meet,” she added.

This year’s Isa deadline is April 5th so if you are considering saving your money in a high-interest account you had better hurry.

Tags: money, sensible banking, firm, ISA, year, fallen.The study, growth, addition

Travellers told to pack sensibly

We are being warned not to take too many valuables with us as we set off on our holidays.

The warning comes from American Express Travel Insurance which claims many of us run the risk of losing a host of valuable items every time we go abroad.

The firm is urging holidaymakers to think before they pack and make sure that they are not taking items which have a combined total higher than that which their travel insurance covers.

“It is… important to consider the accumulative value of items. Our recent survey results4 reveal nearly half [43 per cent] of respondents had packed clothing, jewellery and watches worth more than £250,” said Joanne Field from American Express.

“Many travellers do not read their policy terms and conditions before travelling and are unaware that insurers impose a single item limit and a valuables total limit.”

American Express’ words of warning come as new excess baggage policies are due to be introduced at airports around the UK.

Tags: policy terms, ISA, item, watches, policy, Joanne Field, travel insurance covers."It