Savers 'will welcome higher Isa limits'
16 April 2008
Increased annual subscription limits on individual savings accounts (Isas) are good news for savers, claims Nationwide.
The building society states that those saving for children or saving for retirement in such vehicles clearly stand to benefit from boosted tax-free allowances in the accounts.
However, it adds calls for the government to equalise limits on cash and equity Isas.
Roy Beale, media relations officer for Nationwide, contends: "There is the possibility of greater returns on stocks and shares compared to cash."
"However, this is not guaranteed and once funds are transferred from a cash Isa to a stocks and shares Isa they cannot be transferred back," he warned.
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Research conducted by the building society last month revealed that three quarters of people were unaware of the changes to Isa rules implemented at the beginning of April.
It also estimates that 62 per cent of people do not have an Isa, with 17 per cent stating that they have not invested in one as they do not understand them.
