Make the most of your ISA allowance

Commenting on the upcoming increase in ISA limits for over 50s, Kevin Mountford, head of banking at moneysupermarket.com said; "ISAs are a great way to save tax free, and the increase in ISA limits will hopefully motivate more and more people to start saving, and encourage those that are already putting cash aside to save even more.

"Savers might rightly feel they have taken something of a battering over the last year, with the dramatic fall in the Base Rate bringing down the rates on savings deals. When the ISA limit increase was announced back in April we found that most savers felt the Government wasn't doing enough to help, with 84 per cent saying they felt the Chancellor could have done more.

"Which is precisely why savers must make the most of their money when they can, and ensure they save the full limit into the best ISAs available. The Base Rate might still be low, but the top ISA rate is paying 2.5 per cent above this and offers savers some excellent returns.

"Those looking to top up their ISA must be aware that their cash ISA allowance cannot be split between providers, so savers looking for a better deal should top up with their existing provider and then look to transfer their money to a better product at the start of the new tax year in April. Be warned that if you want to transfer your ISA, you need to do it in the right way, so you don't lose you tax-free ISA allowance."