Savings Number Rise as New Rules Start

Savings Number Rise as New Rules Start.

The British Bankers Association (BBA) has said they have seen a surge in the number of savers making deposits has risen following the introduction of new rules.

Following New Individual Savings Rules (NISA) banks have reported a rise in savings being deposited in July. The new rules started in July and savers took advantage of the new higher limit for tax-free accounts, with a total £4.9bn being deposited.

The new rules were announced in the chancellor’s budget and said that allowances for NISA or investments would rise to £15,000.

In an average tax year, April sees a big surge in tax-payers making deposits into savings as the new tax year starts and people getting a fresh allowance. However, this year the number of deposits were down compared with previous years as people waited for the new rules to start and make use of the new higher allowance.