New Isa rules "can only be a good thing"

Simplified rules governing individual savings accounts (Isas), which come into effect next month, are a "good thing" for consumers.

From the start of the new tax year all Isas will have a limit of £7,200, of which £3,600 can be lodged in cash - an increase of £600.

Michelle Slade, a spokesperson for financial information group Moneyfacts, said: "They've simplified it a lot and that's going to make it better for anybody who wants to take out an Isa - it will be more attractive for them."

However, Ms Slade says the changes have not been publicised widely enough or explained to consumers.

"They probably should do something more to advise customers out there what is going on; the fact that they can now put in an additional £600 and it's tax free … Obviously that's the first port of call for anybody who's going to take out savings," she adds.

Research by the Tax Incentivised Savings revealed that 18 million Britons have already opened Isas.

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