23 April 2009
Government plans to increase the ISA limit are unlikely to encourage those planning to ditch their savings to change their mind, it is claimed.
In plans announced during yesterday's Budget, the cash ISA limit is to be increased to £5,100 for over-50s, with other savers to benefit next year.
However, uSwitch.com suggests the measures have come too late, especially as many people are failing to save at present.
Findings from uSwitch.com show that 17.1 million UK households are not using their cash ISA allowance, with 4.3 million planning on scrapping their existing account.
Additional figures show people are turning to their piggy banks as a means of saving, collectively stashing in excess of £1 billion in the home.
Utilising the full ISA limit is a means of getting the most back from savings, the price comparison site adds, with consumers able to search online for their new ISA account.