A missed opportunity to help savers and first time buyers

05 December 2012

Nationwide Building Society has pledged to continue its campaign for an increase in the cash ISA limit, to match the equity ISA limit. The Society had called on Chancellor George Osborne to raise the current cash ISA limit to match the equity ISA limit - £11,520 next year - in today’s Autumn statement, to help out hard pressed savers and house buyers.

Graham Beale, chief executive of Nationwide said: “Increasing the cash ISA limit would have given a much needed boost to savers and the many first time buyers who use ISAs to save for their deposits. The Chancellor’s announcement to consult on permitting SME equity investments in stocks and shares ISAs is not consistent with what many ordinary savers require.”

“In the first six months of this year Nationwide helped 20,000 people buy their first home and we believe doubling the cash ISA limit would enable more first-time buyers to build a larger deposit in a tax-free vehicle and help them get on the property ladder. The change would also have helped savers concerned at the erosion of their income as inflation continues to outpace the returns they are earning on their cash savings.

“Nationwide has consistently called on the Chancellor to raise the cash ISA limit to bring it level with the equity ISA limit because we know from our members that this would provide consumers with a simpler and fairer way to maximise their tax-free savings. There is widespread support for the change amongst savers and the media, so Nationwide will continue to campaign for an increase in cash ISA limits and continue to attempt to persuade the Government that this is the right thing to do.”

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