Industry insiders welcomed the move in this week's budget to raise the limit on savers' cash Isas
The 20 per cent increase would actively encourage customers "to save for their futures in a tax efficient way", Abbey head of savings Reza Attar-Zadeh commented.
Industry representative body the PEP and Isa Managers' Association (PIMA) looked forward to improved "long, medium and short-term" tax-efficient savings for UK consumers.
But although Adrian Coles, director-general of the Building Societies Association (BSA), agreed that the raised limit was "good news for savers", he stressed that future upper limits should be regularly reviewed to ensure that inflation does not mean customers are saving proportionally less of their income with each passing year.
Moreover, transfers from stocks and shares Isas to cash Isas should have been facilitated, he insisted, to allow savers who later rethink stock market decisions the opportunity to rectify any "errors of judgement".
More than 17 million people in the UK currently hold an Isa, Treasury statistics show.To learn more about cash Isas, click here.
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