The under-50s are to join the over-50s in benefiting from an increase in the Isa allowance. From today the tax-free Isa limit will be set at £10,200 for everyone.
Savers can now pay up to £10,200 into a stocks and shares Isa every year or up to £5,100 into a cash Isa and the balance into a stocks and shares Isa. Previously the overall limit stood at £7,200 and the cash Isa limit was £3,600. The new limits came in last October for those aged 50 or over, but have only just come into effect today for the under 50s.
Getting the best rate
Melanie Green, Which? Principal Researcher, said: ‘Cash Isa rates vary enormously so don’t just plump for the one your bank offers. The Which? cash Isa finder allows you to search for the best cash Isa for you. You may also want to compare the rates available on ordinary savings accounts to check that the Isa offers you the best rate, as non-Isa savings account rates do sometimes beat Isa rates these days. But remember to compare the net rate with the cash Isa rate as ordinary savings accounts are usually taxable.’
For more details on tax-free savings, read the free .
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