Yorkshire welcomes allowance increase for tax free savings

Savers are being reminded to make the most of their nest egg tax free after the Government announced it will be increasing next year's ISA allowance.

The Treasure has confirmed the total adult ISA limit for the 2012/13 tax year will rise to £11,280, of which half - £5,640 - can be in cash. The maximum which can be saved into a cash ISA in the current financial year is £5,340.

Yorkshire Building Society Savings Product Manager Lynne Pepper welcomed the Treasury's decision.

She said: "It's really good news for savers that the ISA allowance will go up next year.

"In the current economic climate, people are looking for ways to make their cash work harder and making savings more tax efficient is one way of doing this.

"Some savers only tend to think about ISA accounts at the beginning or end of the tax year but ISAs are a year-round option to invest money tax-free."

The Yorkshire has a range of cash ISAs, from a Monthly Reward ISA - which can be opened with a minimum balance of £10 and pays a competitive monthly rate of interest - to an eISA, which allows convenient management of savings online.

To find out more about Yorkshire Building Society's competitive cash ISA range, visit ybs.co.uk.