Because the date the New Isa was introduced was three months into this tax year on 1 July, financial advisers have several different limits to consider.
Any amounts that your clients have paid into an Isa between 6 April and 30 June 2014 will count against their £15,000 Nisa subscription limit for 2014 to 2015.
Between 6 April and 30 June 2014, the total amount you could pay into a cash Isa was £5,940. Those with a stocks and shares Isa could also pay into that account, but the combined amount they could pay into both account types during this period could not exceed £11,880.
From 1 July, if permitted by account terms and conditions, investors could make additional payments to cash or stocks & shares Nisas in whatever combination they choose, provided they do not pay in more than the overall Nisa limit of £15,000 within the tax year 6 April 2014 to 5 April 2015.
For example, if on 10 April 2014, your client paid the maximum amount allowed into a Cash Isa (£5,940) and they do not want to pay into a stocks and shares Isa in this tax year, then from 1 July the limit will increase and their account will become a cash Nisa.
Subject to account terms and conditions, they could add any amount to your account, up to the new limit of £15,000. Therefore, between 1 July 2014 and 5 April 2015, they could pay in a further £9,060.
With an increase in the savings limit, the experts FTAdviser spoke to recommend advisers should check whether their clients would receive protection under the Financial Services Compensation Scheme rules.
Anna Bowes, financial adviser and director of London-based Savings Champion, warns those who transfer from stocks and shares to cash Isas, could find themselves with far more than the £85,000 that is protected by the FSCS.
So Ms Bowes says transferring could be important not just for the best rates, but also to keep your money secure. For example, choosing multiple accounts with different providers would mean each pot is protected up to the £85,000 limit, multiplying the amount covered.
