New Isa limits “encouraging for savers”

People can now invest more funds in an individual savings account (Isa), reports Nationwide.

Since the beginning of April 2008, annual subscription limits have increased by £2,000 to £7,200 and the maximum cash element has risen from £3,000 to £3,600.

Roy Beale, media relations officer for the building society, said: “This is encouraging for savers.

“However, we would like to see cash and equity Isa limits equalised and index linked to inflation to ensure their true value is maintained.”

Mr Beale warned that although savers can now convert their cash Isa into a stocks and shares Isa, they cannot be transferred back again.

However, there is the possibility of greater returns with stocks and shares Isas, he added.

Research by Nationwide last month found that three-quarters of people were unaware of the changes to be made to Isas.

Anyone wishing to talk about the investment options available to them should speak to someone at their local building society branch, advised Mr Beale.

© Adfero Ltd

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