What are the new ISA limits?

Excuse the pun, but the New ISA has certainly become nicer.

First of all, the ISA limit has been increased to £15,000 from the 1st July 2014. In addition, there is no fixed or maximum amount that can make up the cash element and so you will be able to invest up to 100% in cash. Whether this is the best course of action with most cash ISA interest rates not keeping pace with inflation rates, is another matter.

Another change in flexibility is the option to convert from stocks and shares ISAs back to cash ISAs and vice-versa. Previously, you could only convert cash ISAs to stocks and shares. This will be more accommodating for investors on different lifestyle events such as retirement etc.

But hold your horses! The limits and amounts are still restricted from the 6th April to £5,940 in a cash ISA and with your total ISA allowance (with stocks and shares) not exceeding up to £11,880. From 1st July 2014, your existing ISA will automatically become a NISA with higher limits and greater flexibility.

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