29 May 2009
The government's decision to increase the ISA limit is very welcome and could help boost the country's savings, it is claimed.
Putting more non-taxable money away is a good thing for the nation's savers, said Adrian Coles, Director-General of the Building Societies Association (BSA), although the benefits of the move are not likely to be seen for some time.
"It is not a big concession at the moment because, of course, interest rates are so low but we hope that as interest rates go through the cycle and move up again that will be an increasingly valuable feature of the ISA," revealed Mr Coles.
He added that it is clear that savings need to be boosted and debt reduced through new government measures aimed at improving people's financial situations over the coming years.
The latest statistics from the Bank of England show that the average interest paid on instant access savings accounts in April was 0.15%.