When the individual savers accounts were introduced in 1999, a limit of £7,000.00 was set. This has not changed in line with inflation and is now lower than the products that it replaced.
The individual savers account has proved to be very popular with 16million accounts being opened. Fund managers are now asking for an annual review in line with inflation.
Our view
The numbers speak for themselves. The Government want us to save yet they have not increased the limit on tax efficient saving for nearly 10 years.
The reality is:
THEY DO NOT WANT YOU TO SAVE.
THEY CANNOT AFFORD FOR YOU TO SAVE.
Forget the hype, they do not wish to offer tax free savings. They only want us to save in accounts that we pay tax on. Most people are not 'mugs'.