ISAs popular with older investors

ISAs popular with older investors

The government’s ISA allowance increase for savers over-50 has proved hugely popular, with older investors more than doubling their lump sum contributions into share-based ISAs, according to new research from Virgin Money.

Income funds have proved the most popular, with contributions rising 130% in the three months from 6 October 2009 to 5 January 2010 compared to the same period the previous year, Virgin Money found.

Lump sum investments increased 120% on year during the same three month period.

On 6 October, savers over 50 could take advantage of an increased ISA allowance, meaning they could invest up to A?10,200 in the tax-free accounts.

“The decision by Chancellor Alistair Darling to increase the ISA threshold to A?10,200 for the over 50s has been very popular,” said Grant Bather, Virgin Money spokesperson.

“With the ISA allowance of A?10,200 to be extended to all savers in the new tax year we would urge all investors to consider making the most of the increase in the tax efficient allowance.”

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