Making savings by investing in ISA’s has been made easier with the recent changes in deposit limits. Before this year, the limit for cash ISAs was £3600 and a Stocks & Shares ISA limit was £7200. The total you could invest was £7200. Now the limits have been raised to a total of £10,200 and you have till 5/4/2011 to do it. Other changes have been made, too. Prior to October 2009, anyone over the age of 50 could deposit £10,200 half of which could be in cash. Now everyone can take advantage of new limits of £5100 for cash ISAs and £10,200 for Stocks & Shares ISAs.

The limits for ISAs is set each year and announced in the annual speech on the budget. There are no longer mini and maxi ISAs but simply Cash ISAs and Stocks and Shares ISAs. So you can have two types of investments that you can hold in one account or in two.

An ISA, or Individual Savings Account, is a type of investment that’s grown very popular due to depositors not being taxed. You can invest a lump sum or make regular deposits, depending on your financial circumstances. This flexibility is very convenient for many people who want to start making savings by investing in ISA’s. You will not be obligated to pay capital gains on your ISA savings so it is a good long term plan for growth that offers tax savings as well as investment opportunities.

If you choose an S&S (Stocks and Shares) ISA instead of or in addition to a Cash ISA, you have access to thousands of funds, ETFs, shares, and bonds to choose from. Many ISAs offer loyalty bonuses to encourage depositors to stay in the funds. You can manage your ISAs online or in person and make your own trades or consult a help line that most ISAs offer to depositors.

Making savings by investing in ISA’s is, aside from the annual deposit limits, flexible in that you can transfer funds from your Cash ISA to your S&S or vice versa and it won’t impact your annual deposit allowance (as long as you don’t exceed the limits) or your tax status.

Cash ISAs are open to everyone over the age of 16 as long as they are UK citizens. Every UK citizen over the age of 18 can have both Cash and S&S ISAs. Making savings by investing in ISA’s is an excellent way to plan for your retirement, save for a home or other property or reach a financial goal.