Late last year, HM Treasury announced that subscription limits for Individual Savings Accounts (ISAs) from April 2012 will increase to £11,280. Half of this amount can be saved in cash. Junior ISAs (JISAs) are now also available from 1 November with a limit of £3,600 for each eligible child per year, as part of the Government’s commitment to encourage saving for children.
With the new tax year just about to start, you may want to think about using this valuable tax efficient investment vehicle. Fortunately, many of the deposit providers reserve their best rates for just this type of plan. If you need instant access to the funds then Marks and Spencer’s Money are offering a rate of 3% gross per annum on their advantage cash ISA option. If you are prepared to lock up the fund for a period of time, then Birmingham Midshires are offering a rate of 4.05% gross for their 2 year fixed rate Cash ISA.