Advertisement

ISA savings accounts become NISA but what is the difference?

The ISA today got NISA. That is, the old style Individual Savings Account has become the New Individual Savings Account.

It is still about putting money aside, away from the taxman. So what's new? The government says it is more flexible, more simple and more generous.

The ISA becomes the NISA from today. Credit: Dominic Lipinski/PA Wire

But there are concerns that this is just more of the same low interest rates.

Let's go through the new rules:

  • The allowance rises to £15,000
  • It can now be split anyway you choose between cash and shares
  • Junior NISA allowance rises to £4,000

Analysis for one of the major comparison sites suggests savers could earn an extra £240 in interest annually - although it also found about two thirds of people didn't know about these changes.

There is also evidence that interest rates remain grim.