Wednesday, 28 November 2012

Double the Cash ISA limit

The UK's biggest building society is calling on the Chancellor to allow a huge increase in the amount of tax-free cash that savers can put in Individual Savings Accounts.

There is no tax paid on the interest earned from ISA savings.

In the run-up to the Chancellor's Autumn Statement next month, Nationwide Building Society says the annual cash ISA limit should be doubled to £11,280.

Along with other building societies, Nationwide believes that a big boost to cash ISAs would allow first-time buyers to build up larger deposits - and it would help savers, especially pensioners and those close to retiring, who are worried about paltry returns on their savings.

Currently, you can save £5,640 a year in a tax-free cash ISA, but you can put aside twice that -- the full £11,280 -- in a stocks and shares ISA.

Nationwide said it is renewing it's call for equal treatment of cash savings, because many people prefer the security and flexibility of standard savings accounts to the unpredictability of stockmarket investments.

More info on Cash ISAs.

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