Since the government increased ISA allowances last October, investors aged 50 and over have more than doubled their lump-sum contributions into share-based individual
savings accounts, it's emerged.
Analysis by
Virgin Money shows that income funds have been the big winners, with contributions increasing by around 130 per cent between 6 October last year and 5 January 2010. The increased allowance - £10,200 for the over-50s - is believed to signal a continuing strong recovery in ISA sales in the run-up to the end of the tax year.
"The decision by Chancellor Alistair Darling to increase the ISA threshold to £10,200 for the over-50s has been very popular," confirmed Virgin Money's Grant Bather. "With the ISA allowance of £10,200 to be extended to all savers in the new tax year, we would urge all investors to consider making the most of the increase in the tax-efficient allowance."
Virgin Money's findings follow other recent figures from the
Investment Management Association, which pointed to a record £23.6 billion being invested in retail fund sales in the 11 months to 30 November 2009 - a sum over ten times the amount invested in the same period of the previous year.
