If you will be over 50 on 6 October, you can start taking advantage of the new Isa limits, says Jessica Bown in The Sunday Times. While most of us won’t be able to use the new £10,200 allowance until next April, anyone over 50 can increase their investments to the new limit from 6 October.
But if you invest in your Isa via monthly contributions, you can start reaping the benefits now. Previously, you couldn’t invest more than £600 a month without exceeding the £7,200 limit. But you can now up your monthly amount to £850 without hitting the £7,200 ceiling before October, says Hargreaves Lansdown.
But remember that you can’t open more than one Isa a year and many providers only accept one payment a year. So speak to your provider about whether you can start making monthly contributions if you don’t already do so. If you have yet to open an Isa this tax year – ending 5 April 2010 – then the best cash Isa currently available, according to Moneyfacts.co.uk, is Barclays Bank Golden Isa, which pays 3.61% annual equivalent rate with no cap on deposits.