The Financial Services Consumer Panel have said that the Governments' decision to raise the limit of mini Isa's from £7000 to £4000 on 6th April will not encourage people to save more.
Until the change-over date, investors will be allowed to put £3000 in a stocks and shares mini Isa, £3000 into a cash mini Isa, and £1000 in an insurance Isa in the current tax year, but this is to be changed.
After 6th April, insurance Isa's are no longer available, and the annual investing limit of mini stock and share Isa's will increase to replace it.
Our view
We disagree with this stance, many who like the mini-isa options of £3,000 and £3,000 in stock and shares ISAs rarely used their £1,000 Insurance ISA allowance.
Now that the £1,000 Insurance ISA is being replaced by the ability to invest an extra £1,000 into stocks and shares ISAs i.e. up to £4,000, we believe it will be used.