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Over 50s October ISA allowance increase not compulsory

03 August 2009 / by Andy Davies

Over 50s could miss out on the new ISA limit due to take effect from October 6, because the Government has failed to make it a regulatory obligation for ISA providers to offer the increase, Saffron Building Society has claimed.

In fact, according to Saffron, providers of existing ISA products do not have to allow over 50s to subscribe to the new limits in October, although the changes will be made compulsory for all ages in April 2010.

Currently the ISA limit stands at £7,200 with a maximum cash investment of £3,600, but under the new terms savers would be able to invest up to £10,200 with a maximum cash investment of £5,100.

Andy Golding, chief executive of Saffron Building Society, is disappointed with the government's decision not to force providers to offer the new over 50s ISA limit, he said:

"In the current low interest rate environment, savers need as much encouragement as possible - particularly older savers who are not experiencing the return on their money that they might have expected.

"If increasing the limit for over 50s ahead of April 2010 is voluntary, many older ISA savers may miss out on the opportunity to grow their ISAs."

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 Product NameISA OptionIncome YieldMore Info
Income Builder yes7.50%
per annum		More Info >
A 5 years and 3 weeks structured investment plan paying a potential maximum quarterly income of 1.875% (equivalent to 7.50% per year). Also available for Stocks & Shares ISA and ISA transfer.
FTSE Income Deposit Planyes7.25%
per annum		More Info >
A 6 year capital protected structured deposit plan with the potential to pay 7.25% annual income. Backed by the Royal Bank of Scotland. Also available as a cash ISA and for ISA transfer.
FTSE 100 Bonus Income Planyes7.50%
per annum		More Info >
5 year structured investment plan paying an income of 7.50% annually, including a potential annual bonus of 0.5%. Also available as a monthly income option, Stocks & Shares ISA investment and ISA transfer.
FTSE Income Planno5.80%
per annum		More Info >
3 year structured income plan with a fixed quarterly income return of 1.45% gross. Equivalent to 5.80% gross per year. Not available for ISA investment.
Schroders Monthly High Income Fundyes
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The Schroder Monthly High Income Fund aims to generate a high income, whilst not compromising capital, by investing in a diversified basket of fixed income securities. 100% Discount off Initial Charges.
Invesco Perpetual Monthly Income Plus Fund ISAyes
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Popular monthly income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. 100% discount on initial charges.
Henderson Strategic Bond Fundyes
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The aim of this fund is to deliver a quarterly income to investors by investing in higher yielding assets, which will include most types of fixed interest securities such as high yield bonds, investment grade bonds and government gilts, as well as having the ability to invest a proportion of the fund in equities. Income is paid to you quarterly.
Schroders Income Maximiseryes
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The Schroder Income Maximiser Fund ISA aims to deliver a target income yield of 7% pa, also providing potential capital growth. Income is paid to you quarterly. 100% Discount off Initial Charges.
Invesco Perpetual Corporate Bond ISAyes
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This highly popular fund aims to achieve a high level of overall return with relative security to capital. Income Paid to you twice yearly. Up to 100% Discount off the Standard Initial Fund Charge.
Artemis Income ISAyes
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One of the leading UK Equity Income Funds. The Fund managers hunt out companies with strong free cash flow and solid balance sheets. Income is paid to you twice yearly. 100% Discount off the Standard Initial Fund Charge.
Jupiter Corporate Bond Fund ISAyes
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The Jupiter Corporate Bond aims to achieve a high level of income with the opportunity for capital growth, through mainly investing in fixed interest securities. Income is paid to you twice yearly. 87.5% Discount off the Standard Initial Fund Charge.
Invesco Perpetual High Income Fund ISAyes
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One of the UK's most popular income fund ISAs the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
M&G Corporate Bond ISAyes
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The M&G Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge.
Jupiter Merlin Income Portfolioyes
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The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Fund Charge.
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†† Income payments are dependent upon the FTSE 100 Index.

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