Savings

News: April 2014

Savings

Important changes to ISAs

In order to encourage savers, the current £11,520 ISA limit is to be significantly increased to £15,000 from 1 July 2014. Furthermore, the current 50% cash ISA limit of £5,760 is to be abolished so that any combination of cash and stocks and shares can be held within the ISA wrapper up to the overall £15,000 limit. These products will be termed “New ISAs” or NISAs. The Junior ISA limit will increase to £4,000 from 1 July 2014.

More good news for savers

The 10% starting rate will apply to the first £2,880 of savings income for 2014/15. However, this rate will be abolished and replaced with a zero rate on the first £5,000 of savings income from 2015/16 onwards.