Supporting ISA reform

Will you put your name to the Financial Mail on Sunday’s latest savers campaign?

17 September 2012: People who like to save into popular Individual Savings Accounts (ISAs) and would welcome a change in the rules are being asked to sign an online petition supporting it.   It’s part of the latest campaign by the Financial Mail on Sunday which wants the Chancellor, George Osborne, to revamp ISAs in his Autumn Statement, due on 5 December.

The suggestion that people are being asked to support is for savers to be able to use their full annual ISA allowance (currently £11,280) to fund a tax-free cash ISA.  At the moment savers are limited to putting a maximum of £5,640 into a cash ISA with any more of the allowance available to go into a stocks and shares ISA, with their more unpredictable return.   Savers may also choose to put the full ISA allowance into a stocks and shares ISA.

Change would bring more flexibility for savers and particularly benefit many First Time Buyers, who would potentially earn more interest and more quickly reach the amount needed for a mortgage deposit.

Financial Mail’s Personal Finance Editor, Jeff Prestridge, explained more about how changing the limit would help in the 16 September edition.

If you would like to sign the online petition to the government you can do so here.

Earlier this year, the Chief Executive of Nationwide, Graham Beale, wrote to the Chancellor suggesting that ISA rules need to change in exactly the way being highlighted again now.

Graham Beale says, “I am pleased to support Financial Mail’s online petition.  This is a really important issue for savers and I urge anyone who supports giving savers a better deal to add their names to the petition”.