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Higher ISA cash limits for Britons in a saving mood

23 March 2007
British consumers are in the mood to save, a survey from Legal & General has found, with 64 per cent of adults saying they are eager to stash their cash instead of spending it.

The will to put extra pennies aside for a rainy day has grown year-on-year for three consecutive years, the insurer found – just 56 per cent of people favoured saving back in 2005.

Meanwhile, the extra leeway for would-be savers provided by Gordon Brown's budget, which raised the maximum savings limit on a cash ISA to £7,200, has been given a cautious welcome by financial analysts.

People will be able to set aside more of their money than ever, while the maximum limit is easily divisible into 12 monthly payments of £600.

But the ISA reform was too little, too late for many commentators: "We need to move further and faster" to revitalise saving in the UK, the Association of British Insurers' director general Stephen Haddrill commented.

Nevertheless, "the nation is firmly in 'save' mode as we enter the ISA market this year," Legal & general's director of customer marketing Claire Stracey added.

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