NS&I Announces ISA Changes For Over 50s

Released on: October 5, 2009, 7:32 am
Author: National Savings & Investments
Industry: Financial

NS&I (National Savings and Investments) is increasing the ISA allowance on both its Direct ISA and Cash ISA* for its over 50s customers. The revised allowance will come into effect from 6 October 2009.

This change will enable existing Direct ISA and Cash ISA customers who will be 50 years or over on the 5 April 2010 to deposit up to £5100 into their ISA in the current tax year. From 6 April 2010 more than 400,000 of NS&I's Direct ISA and more than 231,000 Cash ISA savers will be eligible for the higher allowance.

These changes reflect the Chancellor’s announcement in his 2009 Budget which stated that cash ISA customers aged 50 years or over should have an increase to their tax-free ISA allowance, increasing the maximum investment from £3600 to £5100 from 6 October.

The interest rate paid on NS&I’s Direct ISA is currently 2.50%, and 0.5% per annum** on its Cash ISA.

John Prout, Director of Customer Sales and Retention at NS&I, said: "We have contacted the 365,000 of our ISA customers who will be 50 years or over on the 5 April 2010 to let them know that they can make use of their higher allowance from 6 October. They can do this by calling NS&I on our new freephone number, 0500 007 007.

At NS&I we pride ourselves on being straightforward in both our communications and our savings bond range. We urge all of our eligible ISA customers to take full advantage of the increased allowance available to them."

NS&I has changed its general enquiries number. Customers will now need to call the freephone number 0500 007 007*** to contact NS&I directly. The former chargeable enquiries number, 0845 964 5000, will continue to operate but customers may incur a charge from their provider. NS&I’s sales line will continue to operate through 0500 500 000.

ENDS

Notes to editors

* The NS&I Cash ISA is no longer on sale. Customers who already have an NS&I Cash ISA can carry on using it; however, deposits can no longer be made at a Post Office branch or at a bank/building society. Customers can still make deposits by phone, post, standing order and electronic funds transfer.

** Rates paid per annum include AER. This stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year the rate quoted and the AER will be the same.

As at April 2009 there was more than £2.4 billion invested in the NS&I Direct ISA and over £1.5 billion in the Cash ISA.

*** Calls from mobiles may not be free. All calls may be recorded. Calls will be taken by one of NS&I’s award-winning UK customer service team, available every day from 7am till midnight.

About NS&I
NS&I is one of the UK's largest financial providers with almost 27 million customers and over £96 billion invested. It is best known for Premium Bonds, but also offers Inflation-Beating Savings, Guaranteed Equity Bonds and Children's Bonus Bonds in its range. All products offer 100% security, because NS&I is backed by HM Treasury.

PR contact:
Gill Stephens
National Savings and Investments
375 Kensington High Street
London
W14 8SD
020 7348 93449
www.nsandi.com