Savers to benefit from ISA limit rise

The Government has agreed to allow savers to put an extra £3,000 per year into tax-free savings accounts as part of its bid to boost the economy.

In his Budget announcement yesterday, Chancellor Alistair Darling announced that the tax-free ISA (Individual Savings Account) limit would be upped from £7,200 a year to £10,200.

This includes up to £5,100 in cash - up from £3,600 previously - with the remaining amount to be made up of stocks and shares.

A spokesperson for debt management company Gregory Pennington said: "The increased ISA limit means that savers can put more money away without having to pay tax, which makes good financial sense.

"Savings offer a lot of protection against debt and other financial difficulties, although if savers feel they may need more flexibility over withdrawals, it`s worth finding out more about the various savings accounts on offer."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.