Over 50s ISAs: New Isa limits for those over fifty explained, plus better money advice on finding the best ISA deal for your money.

In the 2009 Budget the Chancellor announced that the ISA limit for those over the age of 50 would be raised from £7,200 (£3,600 for cash ISAs) to £10,200.

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Over 50s ISAs: The New Isa Limits Explained

The new Isa limits apply to anyone born on or before 5th April 1960. These limits changed from 6th October, 2009 and are ongoing for everyone else from 6th April, 2010.

It basically means that if you are over fifty years old you can invest an extra £3,000 in a stocks and shares ISA before anyone under 50 gets the chance.

Calculations into over-50s ISAs suggest that if you take full advantage of the extra thresholds you could save as much as £45,000 in 10 years. Read More: Over 50s Isas - Save More Money

Outside an ISA the taxman is going to take part of any return you receive for investment, but inside an ISA he is not. Just how much extra the investor will get back by sheltering savings in an ISA will depend upon the type of investment and their tax rate.

Research has found two thirds (63%) of those eligible, intend to contribute up to the full increased £10,200 limit.  The research among Barclays Stockbrokers clients found that they are also confident of the potential returns from equities with two thirds of those planning to increase their allocation to stocks and shares and just 13% planning to increase their cash investments. 

Over 50s ISAs: Best Isa Options

  • £10,200 in a stocks and shares ISA, including up to £5,100 in a cash ISA.
  • Shop around for the best over 50s ISA
  • If you have a cash ISA already you can still invest your stocks and shares ISA for this tax year with another provider.
  • Look at the interest rates offered - check before committing to a fixed rate, but not investing your money now could mean some of your money that could be your tax free, goes to the tax man.

Over 50s ISAs - Read More

Over 50 Isa Questions? Ask a Money Expert

Learn More about Isas with A Guide to ISAs

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