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Wealth Management News

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13 Aug 2014

Many Unaware Of New ISA Rules

New ISA Rules were put into place by the government over a month ago, with high hopes of invigorating the savings market. However, many savers seem to be unaware of these changes, and providers aren´t doing enough to either inform or entice them to save up to the new £15,000 limit, warns an article on Money Facts.

According to a study by GE Capital Direct, 47% of those asked had no idea that any changes had been made, while more than half (55%) said that they didn´t know when the new savings limit had become available. Furthermore, only 4% of savers have topped up their account since the new NISA launched, and a staggering 47% had no plans to add any additional savings to their accounts.

The new opportunity to save up to £15,000 tax-free should come as welcome news to most savers, but many are missing out on this chance due to lack of awareness. There are some good deals to be had, the article advises, such as Coventry´s easy-access ISA which pays out 2% on a minimum investment of just £1. It is wise to shop around for the best ISA to find a competitive account - even if you can´t afford to reach the £15,000 savings limit, small amounts can soon add up with a good interest rate.

If you are still in the dark about what these changes mean, the article gives a simple breakdown which we have summarised for you:

You can save up to £15,000 entirely tax-free in 2014/15.

Although the types of ISA remain the same – cash or stocks and shares – there is now greater flexibility between the two.

Whereas beforehand there was a limit on how much of those savings could be cash, you can now save the full amount in cash or split the amount between the two in any percentage.

It is also now possible to transfer stocks and shares into cash, or vice versa. Previously, this could only be done the other way round.

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