Over 50s urged to maximise new higher ISA allowance

Principality Building Society will be accepting top-ups from over 50s on all its ISA products, including its market-leading Direct three year fixed-rate ISA that pays a guaranteed 4.20% AER.

Savers aged 50 and over, or who will turn 50 before 5 April 2010, will be able to top-up their ISAs inline with the new £5,100 limit when it is introduced on 6th October. In addition over 50s without ISAs will be able to open a new Principality ISA and invest the full tax-free allowance, with the majority of Principality ISAs allowing transfers-in for savers looking to switch.

Fixed Rate ISAs

Savers with a Principality fixed-rate ISA will be able to top up their account with one lump sum of up to £1,500. This includes:

One year fixed ISA paying 3.20% AER (does not allow transfers in)
Two year fixed-rate ISA paying 3.50% AER (does not allow transfers in)
Two year fixed-rate ISA paying 3.25% AER (allows transfers in)
Three year fixed-rate direct ISA paying 4.20% AER (allows transfers in)

The top-up must be made by the end of October. New savers aged over 50 will be able to invest their full £5,100 limit.

Easy Access ISAs

Savers currently aged over 50 or who will be 50 before 5 April 2010 will be able to top up their easy access ISA at any time, so long as the total £5,100 limit is not exceeded. For savers that have already invested their current £3,600 limit, they will be able to top up any amount at any time up to £1,500.

Principality easy access ISAs include:

E-ISA paying 1.80% AER
Variable Rate ISA currently paying 0.60% AER

Regular Saver ISA

Customers with Principality's Regular Saver ISA can increase their monthly payments from October up to £550 to benefit from the new tax-free allowance. In addition, the Regular Saver ISA already allows savers to top-up to the full allowance between 1 March and 5 April 2010, so now they will be able to top-up to the new limit of £5,100. The Regular Saver ISA is no longer available to new customers.

James Wright, Marketing Director of Principality Building Society, says: "We'd encourage existing Principality savers to maximise their tax free savings opportunities if they can. ISAs tend to offer some of the best rates around and the increase limit is a great incentive to save more. We are happy to help customers who are not sure of the new limits or their options.

"Although the over 50s are more likely than any other age group to have a cash ISA, data from April 2009 revealed that just under 50% of people over the age of 50 held an ISA. So this is also a great opportunity for older people to look at the current ISAs available and either open an ISA to take advantage of the higher £5,100 limit, or consider transferring their cash into an ISA with a better rate."

Further information is available online at principality.co.uk.