NS&I Announces ISA Changes For Over 50s
on: October 5, 2009, 7:32 am
Author: National Savings & Investments
(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.
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
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.
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
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
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.
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.
National Savings and Investments
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020 7348 93449