THE MP for Stroud has lauded radical new changes to savings which have come into force this week.
From the beginning of July, savers across the country are able to save three times as much money in their ISAs with limits rising from £5,760 to £15,000.
The new limit can be held in either a cash ISA, a stocks and shares ISA, or any combination of the two.
The new ISA will also give savers flexibility over how to save and invest – allowing the transfer of savings previously held in a stocks and shares ISA to a cash ISA without losing the tax-advantage.
According to Stroud MP Neil Carmichael, over 23 million adults have ISAs, and over five million people reach their cash limit every year.
He added that, of the 2,171,000 people in the south west with an ISA, 463,000 had already reached the limit and could benefit from the increased limit.
At the same time, the annual subscription limits for Child Trust Funds and Junior ISAs will be increased to £4,000 to let families save more for their children in a tax-advantaged way.
Mr Carmichael said: “These changes are about supporting savers at every stage – whether that’s saving for a home, saving for your family or saving for retirement.
“The New ISA will help millions of people putting aside money in savings have more financial security.”