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Birmingham Midshires profile of an over 50's ISA saver

21 November 2009

Key findings

  1. The average top up amount is £1,429.63
  2. Over 50's ISA savers who are topping up are most likely to be nearing retirement age (60-64 years)
  3. ISA savers in the South East are taking most advantage of the new limits

From October 6th 2009, ISA savers born on or before 5th April 1960 saw an increase in their ISA cash allowance from £3,600 to £5,100. In the first month since these top ups were introduced, almost two in five (36%) Birmingham Midshires over 50's ISA savers have used the new allowance to make the most of their ISA savings.* The average top up amount is £1,429.63, with 90% of ISA savers adding between £1,000 to £2,000; suggesting that most savers who are topping up their ISA, are making full use of the new limit.

Active age groups

Of the over 50's ISA savers who are taking advantage of the new ISA limits, more than a quarter (26%) are aged 60-64 years. A further fifth (19%) are aged 55-59. This suggests that those heading towards retirement are most actively using the increase in their tax free savings allowance.

Regions reaping ISA rewards

To date, our findings show that almost a quarter (24%) of this population live in the South East with a further fifth (21%) residing in the West Midlands. Regions with less than 5% topping up include Wales, Scotland and the North.

John Bianco, Head of Birmingham Midshires Savings Products, commented:

"It is great to see so many ISA savers taking full advantage of their tax free savings allowance which is so important in today's low rate environment. We are writing to all our ISA customers who are over 50 to make sure they are fully aware of the new £5,100 limit and inviting them to top up before the tax year end in April."

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Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.

*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time.

NET rates are illustrative only, allowing for the deduction of income tax at 20%. If you are a higher rate tax payer, you may have a further amount to pay. If we deduct more tax than you have to pay this can be reclaimed from HMRC.

Tax Free means free from personal liability to Income Tax.

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Birmingham Midshires is a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority. It is entered in the FSA's Register and its Register Number is 169628. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh, EH1 1YZ.
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