Today (06/10/09) the annual ISA limit has increased from £7,200 to £10,200 for people who are currently aged 50 and over, or who will be 50 before 5th April 2010. Younger savers will have to wait until the 2010/11 tax year to benefit from the increased limit.

In his Budget speech earlier this year the Chancellor, Alistair Darling announced the increase in the limits. Eligible savers will be able to invest £1,500 of the increased allowance in a cash ISA and £1,500 in an Equity ISA.

In the last month numerous providers have been offering savers increased ISA rates, to those that will be able to take advantage of the increased limit from today.

Those savers who have already invested this year’s allowance in a variable rate cash ISA should have no problems making the additional top-up. However, those who have taken out an existing fixed rate ISA this tax year should check with their provider to see if they will accept the additional money to be invested. Those wishing to take advantage of the increased allowance should act fast before the end of the tax year.

Contact 1 STOP Financial Services, who will help you look at the different options available to ensure you make the most of your tax free allowances.

Just 5 per cent of those aged 50 plus know what the new Isa limits being introduced on 6 October 2009 will be, according to a Saga study.

Isa limits are being increased to £10,200 for those aged 50 plus from next month but research conducted by Saga showed 54 per cent have no idea what the new limits will be.

A further two fifths (41 per cent) know the limit is increasing but did not know by how much.

But the research did highlight two fifths (39 per cent) are keen to top up their Isas following the change.

Andrew Goodsell, chief executive of Saga Group, said: “Having access to a larger tax free savings and investment allowance will help the over 50s plan their retirement income more efficiently and we do urge people to look out for competitive rates to ensure they invest their money wisely.”

At 1 Stop Financial Services we can help people look at their allownaces and make sure they are making the most of the changes in the ISA limits.