Tomorrow (6th October) sees an increase in the ISA allowance for anyone who will be 50 or over by 5th April 2010 (the end of the current tax year).
If your birthday falls on or before 6th April 1960, you will now be able to invest up to Â£5,100 into a cash ISA (up from Â£3600), or up to as much as Â£10,200 (up from Â£7,200) in a stocks and shares ISA (you can also invest in a mix of the 2).
Those of us who will remain under the age of 50 will have to wait until the start of the next tax year (6th April 2010) until we have the same increase in our annual ISA allowance.
ISAs shelter your cash or investment gains from the taxman, and although the benefits of them can appear quite small on the surface, over time (if you’re using your annual allowance each year) the savings can mount up. And if you can find a suitable account for your savings or investment, then you should always look to put it into an ISA in the first instance to get the most from your money.
For a more in-depth look at the all the details surrounding ISAs, take a look at Five Pence Pieces guide to ISAs.
photo credit: hill.josh