Press release

RATES IN THIS PRESS RELEASE ARE NO LONGER AVAILABLE Two fifths of over 50s will use maximum ISA allowance this year

Thursday 4 March 2010

  • Over a third have topped up ISAs since new limits introduced
  • Only 5% of over 50s are unaware of increased ISA limits
  • Saga offers best buy cash ISA at 3.90%and new Funds ISA with no initial or annual admin fees

Financially savvy over 50s are planning to make the most of the recently increased ISA limits, with almost half (41%) pledging to use their maximum ISA allocation in the forthcoming tax year, research by Saga Personal Finance has revealed. Those living in London are the keenest to avoid tax on their savings, with 46% planning to use their full allowance.

Saga has broadened its range of ISA products for this ISA season, ensuring it offers something to suit all investment appetites: from two cash ISAs, to four fund ISAs and for those who want to pick their own investments - a stocks and shares ISA. Saga has secured exceptional rates and fee free deals for the over 50s to help people’s savings work even harder for them.

In October last year, limits were increased to a maximum of £5,100 for a cash ISA and £10,200 for an investment ISA for those aged 50 and over. Almost all (95%) of over 50s are aware of the increased ISA limits, and over a third (37%) have topped up their pot since the limits increased in October, highlighting just how financially educated the older generation is. ISAs are the most tax efficient investment option available, ensuring investors’ money works hard for them.

Half of over 50s who haven’t topped up their ISAs since this tax year, said they didn’t have the extra money to invest, whilst others invested their money in other ways. Four fifths (81%) of over 50s have an ISA, proving how popular an investment choice it is.

Saga has a range of best buy ISA options available to customers who want to make the most of their yearly allowance including a new funds ISA launched in conjunction with Fidelity Investment and a Stocks and Shares ISA which has no annual fees:

Saga Funds ISA

Saga has selected four funds from Fidelity, which customers can invest in either using their tax free ISA allowance or by transferring existing ISAs funds. The funds have been specially selected to suit the typical Saga customer appetite for investment risk and there are no initial or annual administration fees. Customers will also receive £50 of M&S vouchers if £20,000 or more is invested. This can be achieved through using both this and next year’s tax allowances or a combination of transfers and new investment. The Saga Funds ISA provides the flexibility to invest in any combination of the funds below, offering both income and growth options.

· Fidelity Special Situations Fund (growth)

· Fidelity Moneybuilder Income Fund (income)

· Fidelity Multi Asset Strategic Fund (growth)

· Fidelity Strategic Bond Fund (income)

Cash ISA

Saga offer two best buy cash ISAs. The three year fixed rate cash ISA offers 3.90% AER on a minimum investment of £1. Saga’s two year fixed rate cash ISA offers 3.5% AER on a minimum investment of £1 or 3.6% AER for those with £30,000 or more to transfer.

Stocks and shares ISA

For investors who like to have complete control over their investments a Saga Stocks and Shares ISA offers a great solution. Unlike other brokers Saga does not charge annual fees or insist upon minimum investment or trading volumes. Trades start from just £9.75 to £11.50 online, with access to a range of investments including equities, ETFs, Gilts and Bonds.

Andrew Goodsell, Executive Chairman, Saga comments; “With low interest rates it is important that people make their money work hard for them, I am pleased to see that savvy over 50s are making the most of the increased ISA limits.”


Notes to Editors:

* Research conducted by Populus on 15,393 UK residents aged 50+ between 12-19 February 2010

Saga Share Direct is a registered trading name of Saga Personal Finance Limited, which is authorised and regulated by the Financial Services Authority. Saga Personal Finance Limited is registered in England and Wales (Company No: 3023493) and is a wholly owned subsidiary of Saga Group Limited. Registered Office: Enbrook Park, Sandgate, Folkestone, Kent CT20 3SE. The Saga Share Direct service is operated for Saga Personal Finance Limited by Barclays Stockbrokers Limited (BSL), which is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange and PLUS. Barclays Stockbrokers Limited is registered in England (Company No: 1986161). Registered Office: 1 Churchill Place, London, E14 5HP.

The deposit taker for the Saga Fixed Rate Cash ISA is Birmingham Midshires, a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority. It is entered on the FSA Register and its number is 169628. Registered office: The Mound, Edinburgh, EH1 1YZ (Registered in Scotland No. SC327000).

Saga Personal Finance Limited is registered in England and Wales (Company No: 3023493) and is a wholly owned subsidiary of Saga Group Limited. Registered Office: Enbrook Park, Sandgate, Folkestone, Kent, CT20 3SE.

Saga Fixed Rate Cash ISAs are only available to UK residents aged 50 and over.

The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.

For more information please contact the Saga Press Office on 01303 771529



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