Good news for all ISA savers – the Government has announced they are to stay, indefinitely. Treasury minister Ed Balls made the announcement whilst speaking at the PEP and ISA Managers Association conference, and the news is bound to please a lot of people. What’s more, the maxi/mini ISA distinction will also be removed, making the savings scheme simpler for everyone to understand.
ISAs were introduced in 1999 as the government’s ways of allowing us to save or invest, tax-free. Anyone aged 16 or over can currently take out a mini-cash ISA and save up to £3,000 in it each year, and anyone over 18 can invest in a mini or maxi share ISA and invest up to £7,000 each year. However, the distinction between mini and maxi ISAs has often been berated for being overly complicated with many fearing this can put people off. Removing this distinction should make ISAs more straightforward and encourage even more of us to save, tax-free….