New ISA limits set to be a hit with savers

The new higher Individual Savings Account limits which come into force on 6 April are likely to prove a hit with investors, according to research from Barclays Stockbrokers.

Around two-thirds of Barclays clients interviewed said that they would invest up to the new ISA limits, which will rise from £7,200 to £10,200.

In addition, in last week's Budget it was announced that in future the ISA limit would rise in line with inflation. Money held within an ISA can grow free from tax. "It is encouraging to see over two-thirds of our ISA clients are already planning ahead to the next tax year and looking to take advantage of the increased ISA limits available to all," Barbara Ann King at Barclays Stockbrokers said.

Since their introduction in 1999 an estimated £270bn has been invested in ISAs. Of the new £10,200, up to £5,100 can be held in cash savings with the remainder in equities.