Savers can presently place £5,760, which is only half of their entire ISA allowance into a Cash ISA each tax year.
In a radical overhaul of the system, the BSA also suggests that inexperienced savers should be given cash by the Government for every £1 they save into their first ISA. The suggestion being suggested is 50p for every £1 saved. David Cutter, the chairman of the BSA has called on the Chancellor to implement the measures as soon as December 5, the day of the Autumn Statement.
They also call for savers to be able to transfer money from Stocks and Shares ISAs to cash accounts, should they wish to.
Here at Willis Owen we would welcome any changes that would encourage more people to save for their future, whether in cash or equities. However, we find the timing of the call for Government assistance unusual; considering only a fortnight ago there were rumours that lifetime ISA allowances would be capped, due to Government cuts.
We’d love to know your thoughts on these possible savings initiatives. Please use the discussion forum below to share your thoughts on the subject. Any feedback will provide useful commentary if or when Willis Owen’s opinion is canvassed on this subject.