23rd April 2014
Around one in three (32%) cash ISA holders expect to save more as a result of new £15,000 Isa limit, while close to half (52%) believe it will make no difference to their saving habits according to a new survey from Halifax.
Halifax estimates close to one in four ISA holders (23%) are unaware of the new ISA limits that will increase their total allowance to £15,000 in July.
While 61% of people surveyed were able to identify some of the financial benefits in the new rules, such as the new higher limits, 28% would like more help in understanding the changes.
Typically knowledge of the changes is lowest among younger people. Some 40% of people between 18-24 and more than one in three (36%) 25-36 year olds are unaware of the changes to the ISA rules.
Richard Fearon, Head of Halifax Savings, says: “The new ISA rules have the potential to transform the level of UK’s savings. However, in the short term there remains confusion about how much people can save in their ISA and when. As a result, many savers could already be missing out on tax-free savings by being unaware that it’s possible to start saving now and top up to the full limit when it becomes available in July.”
Halifax says it was the first bank to change its rules so customers can take advantage of the increased £15,000 limit, announced in the budget in March. Savers opening a fixed rate ISA before the new limits begin in July can benefit from tax free savings from the beginning of the tax year and still be in a position to top up to the £15,000 limit when it becomes available in July 2014, less any subscriptions already made to a stocks and shares ISA.