You are here: Home - Saving-Banking - News -

New tax year, new Isa limit available for savers

Written by:
Consumers are given the chance to benefit from another year's Isa allowance and protect their hard earned cash from the tax man.

From 6 April 2012, the Isa limit has been increased to £11,280, of which £5,640 can be saved in a cash Isa.

With average top rates up by 0.20% since last year there is even more reason for consumers to consider how to make the most of their allowance. A comparison of Isa products against non-Isa products also shows little difference between rates; however tax payers will reap the reward from tax free benefits offered by Isas.

Since the new tax year began, there have been a number of new Isa bond product launches including the Starter Isa Issue 2 from Nottingham Building Society offering a market leading rate of 5%. In the easy access Isa market there have also been a couple of new launches from the building societies, for example, Nationwide has launched the Flexclusive Isa with a rate of 4.25%. This is only available to new or existing FlexAccount customers.

Kevin Mountford, head of banking at, said: “The start of the new tax year should encourage all those savers who failed to make use of their Isa allowance to make a fresh start this year and ensure any savings they have are in a tax efficient wrapper.

“By thinking about your Isa allowance at the beginning of the year rather than at the end it means you can make the most of protecting your savings from the tax man and help boost your savings pot. Many people will have focused on sorting this year’s allowance rather than transferring their existing pot, so consumers should make it a priority to action this sooner rather than later.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week