Dec. 7, 2006 – “On the one hand, removing the distinction between Mini ISAs and Maxi ISAs is a welcome move. The new rules will encourage more people to invest in shares by providing greater flexibility to switch from Cash ISAs into Stocks and Shares ISAs.
“Additionally, allowing investors to roll over Cash ISAs from previous years into Stock & Shares ISAs without affecting their current year’s limits will further encourage people to switch into investments that should provide better long-term returns.
“But if the Government genuinely believes that the savings gap needs to be closed then it should not shackle savers to ISA limits that have remained unchanged for seven years. A more realistic limit for Cash ISAs is £5,000, and the limit for Stocks & Shares ISAs should rise to at least £10,000.
“While some of the reforms are welcome, the Government can go much further. It cannot expect to leap a twenty-foot savings chasm by taking a couple of tentative ten-foot jumps.”
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