With less than two weeks to go before the new ISA allowance is launched, moneysupermarket.com is urging over 50s to make full use of the new limits.

The price comparison site has found that some cash ISA deals are paying 2.5 per cent above the Base Rate and according to Kevin Mountford, head of banking at moneysupermarket.com, this “offers savers some excellent returns” on their investment.

From October 6, the new ISA limit means over 50s will be able to invest up to £5,100 previously £3,100, in a cash ISA, while the limit for a stocks and shares ISA will increase from £7,200 to £10,200.

Welcoming the new allowance, Mr Mountford said: “ISAs are a great way to save tax free, and the increase in ISA limits will hopefully motivate more and more people to start saving, and encourage those that are already putting cash aside to save even more.”

However, despite the Government introducing the increases back in April, according to a moneysupermarket.com survey, 84 per cent of savers said they do not think the Government is doing enough to help.

Commenting, Mr Mountford said: “Savers might rightly feel they have taken something of a battering over the last year, with the dramatic fall in the Base Rate bringing down the rates on savings deals.”

He believes this should act as an incentive for savers to use the full allowances, saying: “Savers must make the most of their money when they can, and ensure they save the full limit into the best ISAs available. The Base Rate might still be low, but the top cash ISA rate is paying 2.5 per cent above this and offers savers some excellent returns.”

Compare ISA deals»

© Fair Investment Company Ltd