Norwich and Peterborough Building Society

From 6th October 2009 the ISA limit will increase to £10,200 for anyone aged 50 or over on or before 5 April 2010. Up to £5,100 of the new allowance can be saved in a cash ISA and the remainder of the £10,200 can be invested in a stocks and shares ISA.

Yes, if a customer was born on or before 5th April 1960 (those people who will be aged 50 or over during the current tax year) and they have an “Active” ISA then they can top-up their ISA to the new £5,100 limit, through all existing channels.

A customer who holds a Fixed Rate ISA that has been opened since 6 April 2009 can also top up their ISA to the new limit, although any top-ups into a Fixed Rate ISA must be made in a single payment and these top-ups cannot be made on-line via the internet banking service. 

No, ISA providers don’t have to apply the new limit until April 2010, we expect most providers to allow top-ups of some form but this will depend on each individual provider.

If a customer wants to top up an “Active” Variable ISA they can do this either on-line, in a branch, by sending a BACS credit to their account and if their account is held by the Direct Banking and Savings Team through the post. If the customer wants to top up a Fixed Rate ISA, this cannot be done on-line.

If a customer has a pending ISA, the existing procedure has not changed and the customer would need to complete a new application form (of the correct type) before they can deposit extra funds into their existing ISA. The interest rate and terms which apply to their existing ISA will apply to any top-up. Please remember that where a Fixed Rate ISA has been opened in a previous tax year, in accordance with the account terms and conditions, no additional deposits are allowed into that account.