Government plans to allow cash ISAs to be transferred into stocks and shares without penalty are being welcomed by finance industry chiefs.
Officials at Fidelity International are in approval of plans outlined by economic secretary Ed Balls that will effectively create separate cash and equity ISAs.
Under these plans savers will have the option to choose different providers for both types of ISA, within an overall limit of £7,000 per year.
"This demonstrates the government's commitment to encouraging people to save over the long-term and recognises the greater returns that investors can expect from equities over the long-term," states Fidelity managing director Richard Wastcoat.
"Mr Balls' confirmation that savers will be able to choose a different provider for both their cash and equity ISA within the overall £7,000 limit is to be applauded."
Despite this enthusiasm Mr Wastcoat recommends that the overall ISA savings limit be increased from £7,000 in a bid to further promote long term savings. He argues that a review of the limit is "critical" to ensure that savers have adequate savings for old age.
The government recently announced ongoing commitment to ISAs, which have seen strong uptake since first introduced.
ISA reform plans welcomed
ISA reform plans welcomed
Fri, 24 Nov 2006
Recommended links
Find the best interest rates for your savingsEquity ISAs
Cash ISAs
Savings enquiry form
Isa holders 'switch to find best rate'
Sales of Isa savings accounts soar, reveals research
<% Randomize: ord=int(rnd*1000000000) %>
 %>?)
| savings news |
|---|
| Skipton launches new savings bonds - Wed, 19 Nov 2008 |
| Take out a fixed savings account now, expert urges - Mon, 17 Nov 2008 |
| Credit unions offer good savings accounts, CEO claims - Fri, 14 Nov 2008 |
| More News |
