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Split your ISA and make the most of savings.

WITH the cash ISA allowance for the over 50s set to increase from pounds 3,600 to pounds 5,100 this October, a new facility from Newcastle Building Society will enable members to cash in on the increase this tax year.

MaximISA allows ISA customers to spread their money across more than one cash ISA product, a particularly useful facility if investors have this year's allowance tied up in a closed issue product.

The extra flexibility means that the older saver is no longer tied to one single product within the tax year and can still make the most of the tax-free benefits.

This ensures that older savers will not miss out on their allowance before the tax year end; a guarantee that some providers are unlikely to be able to offer. Newcastle provides an ideal solution to those over 50 who thought they would be unable to reap the benefits of the Government's earlier extension; whether it is savers with fixed-rate accounts that are closed to new funds, or savers whose ISA providers do not have the systems in place to allow them to pay in the additional pounds 1,500.

In accordance with HM Revenue and Customs Rules, Newcastle's ISA facility, which manages customers' ISA products under a 'wrapper', spreading allowances across multiple product choices, can help. Newcastle Building Society's systems allow savings to be split across a number of Newcastle ISA products in any tax year, limiting the total balance within the maximum allowed in that tax year, and taking account of the increased allowances from October.

Not all cash ISA providers have systems ready in this manner and in many instances older savers will be unable to make the most of the additional allowance this year in ways that suit their savings needs.

The MaximISA is available to all eligible savers including those who have not yet opened a cash ISA for the 09/10 tax year, as well as existing Newcastle ISA customers who have not yet used this year's full cash ISA allowance. The Society also allows customers to transfer in unlimited previous ISA subscriptions.

Steve Urwin, senior sales and marketing executive at Newcastle Building Society, commented: "The MaximISA has been launched in time for savers over 50 to benefit from the increase in the cash ISA allowance to pounds 5,100 on October 6 2009.

"This new feature will benefit numerous cash ISA savers, especially those with providers who do not have the systems in place to account for the increase. By giving savers a choice of how they make the most of their cash ISA allowance, Newcastle is encouraging savers to consider all options available and to understand that one ISA product does not necessarily have to be the only way of making the most of tax free savings.

"This is especially true for those who have saved since the launch of ISAs in 1999, whose tax free savings could now total in excess of pounds 43,000.

The ability to save in multiple ISA products is open to all, with the limits of pounds 5,100 only applicable to those over 50 from October 2009.

"We have seen a 43% growth in cash ISA balances year on year at NBS, and now that our customers can consolidate their cash investments, choosing from our competitive product range, we hope to see this trend continuing."

Customers can mix and match from the Newcastle 's current ISA portfolio. For more information, customers should call 0845 600 4331 or visit www.newcastle.co.uk.

Newcastle's Current ISAs are: Newcastle's current ISA portfolio (at September 14 2009): Fixed Rate Options ISA (issue 33): Fixed Rate of 2.95% Gross/AER. Maturity date of August 25 2010. Minimum/maximum Investment pounds 500/pounds 3,600 allowance (ISA limits) plus any transfers.

Access allowed with 90 days notice or 90 days loss of interest.

Available now via branches, online, telephone or post.

Fixed Rate Options ISA (issue 34): Fixed Rate of 3.25% Gross/AER. Maturity date of August 25 2011. Minimum/maximum investment pounds 500/pounds 3,600 allowance (ISA limits) plus any transfers.

Access allowed with 120 days notice or 120 days loss of interest.

Available now via branches, online, telephone or post.

Reward ISA: Variable annual rate of 2.00% Gross/AER excluding bonus.

Variable annual rate of 3.00% Gross/AER including bonus.

1.00% unconditional bonus payable for first 12 months of opening account.

Minimum/maximum investment pounds 500/pounds 3,600 allowance (ISA limits) plus any transfers.

Access allowed with 120 days notice or 120 days loss of interest.

Available now via branches, online, telephone or post.

Newcastle ISA+ (Issue 3) Variable rate of 2.50% Gross/AER. Minimum/Maximum investment pounds 500/pounds 3,600 allowance (ISA limits) plus any transfers.

Penalty free, instant access. Rate guaranteed not to fall below the Bank of England Base Rate before June 1 2011. Interest paid annually on June1.

Operated by branches, post, telephone and online.
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Publication:The Journal (Newcastle, England)
Date:Sep 26, 2009
Words:832
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