Damian Hinds has welcomed the new changes to savings that have come into force this month.
From July 1st onwards, millions of savers across the country are able to save up to three times as much money in their ISAs. As part of the New ISA, the cash limit has gone up from £5,760 in 2013-14 to £15,000 in 2014-15.
In the South East, 3.4m people have an ISA and over a million of them are at their ISA limit and could benefit immediately from the new changes.
The overall New ISA limit is £15,000 – and this full amount can be held in either a cash ISA, a stocks and shares ISA, or any combination of the two.
The New ISA will give savers complete flexibility over how to save and invest – allowing the transfer of savings previously held in a stocks and shares ISA to a cash ISA without losing the tax-advantage.
At the same time, the annual subscription limits for Child Trust Funds (CTFs) and Junior
ISAs will be increased to £4,000 to let families save more for their children in a tax-advantaged way.
Damian Hinds said:
“It’s very important that individuals and families are able to save effectively, as nobody is immune to the knocks that life can bring. Savings provide a financial buffer in the event of illness or redundancy or other events, and can really prevent you from falling into debt. The new ISA limits are great for those who are trying their hardest to save and want to do so in a tax-efficient way, creating the largest nest egg possible for them and their loved ones.”