NS&I ISA changes for over 50s

NS&I (National Savings and Investments) is increasing the ISA allowance on both its Direct ISA and Cash ISA for its over 50s customers, it has announced today. The revised allowance will come into effect from 6 October 2009. This will enable existing Direct ISA and Cash ISA customers who will be 50 years or over on the 5 April 2010 to deposit up to £5,100 into their ISA in the current tax year. From 6 April 2010 over 400,000 of our Direct ISA and over 231,000 Cash ISA savers will be eligible for the higher allowance.

These changes reflect the Chancellor's announcement in his 2009 Budget which stated that cash ISA customers aged 50 years or over should have an increase to their tax-free ISA allowance, increasing the maximum investment from £3,600 to £5,100 from 6 October.

The interest rate paid on NS&I's Direct ISA is currently 2.50%, and 0.5% per annum1 on its Cash ISA. Customers who fit the above criteria will be able to make use of their higher allowance by calling NS&I's award-winning call centre on 0500 007 007, or they can set up regular deposits via standing order. The provisions to enable customers to top up their NS&I Direct ISA online will be set in place at a later date.

"We have contacted the 365,000 of our ISA customers who will be 50 years or over on the 5 April 2010 to let them know that they can make use of their higher allowance from 6 October. They can do this by calling NS&I on our new freephone number, 0500 007 007. At NS&I we pride ourselves on being straightforward in both our communications and our savings products," John Prout, Director of Customer Sales and Retention at NS&I said. "We urge all of our eligible ISA customers to take full advantage of the increased allowance available to them."

Direct ISA key features

The interest rate paid on NS&I's Direct ISA is currently 2.50%
Invest online and by phone only with a debit card
Minimum deposit: £100
Minimum further deposit: £50
Minimum withdrawal: £50 to nominated bank account
All interest free of UK Income Tax
Direct ISA is open to new customers - customers who have an NS&I Cash ISA can transfer into NS&I's Direct ISA but it is not possible to transfer from any other provider.

NS&I has changed its general enquiries number. Customers will now need to call the freephone number 0500 007 007 to contact NS&I directly. The former chargeable enquiries number, 0845 964 5000, will continue to operate but customers may incur a charge from their provider. NS&I's sales line will continue to operate through 0500 500 000.