Money Mensch: Make the most of your ISA
Currently you are allowed to save up to £7,200 in a tax-free ISA and £3,600 in a cash ISA, which is effectively a savings account where you do not pay income tax on the interest earned.
However, from October 6, the limits are to be boosted to £5,100 in the cash ISA and £10,200 in an ISA overall. The catch? That limit is only upped for people who are aged 50 or over right now. Almost everybody else will have to wait until next April before their allowance is increased. However, if you turn 50 between October 6 and April 5 next year, you receive the new allowance on your birthday. As the allowance dictates how much you can put in a cash ISA during the current tax year, filling it up to its brim right now is worthwhile as you will be saving or investing more, tax-free. And, on April 6, you will get an entirely new allowance.