Savers could net more £1,160 in additional interest with the new ISA top-up as Leeds Building Society gets ready to offer existing and new customers the new limit.

From October 6, anyone born on or before April 5 1960 will be able to top up a new or existing ISA including fixed rate products, where the customer has already invested all or part of their 2009/2010 ISA allowance, by £1,500.

Leeds will also accept ISA transfers from other providers who are not accepting the additional top-up, in a bid to attract more savers who want to take advantage of the new allowance.

Explaining Leeds’ decision to accept the new ISA limits, Kim Rebecchi, director of sales and marketing at the building society, said: “We have seen record ISA inflows this year and are very aware that tax-free savings are extremely important to our customers and that is why we have taken the decision to accept this additional allowance.

“All of our very competitive ISAs also allow customers to transfer their previous ISA subscriptions plus interest. Therefore, we expect many ISA customers, who currently have their tax-free savings with other providers who are not accepting this additional allowance, to transfer to the Society.”

Ms Rebecchi believes savers could increase their interest earnings with Leeds, she said: “Some ISA customers, who have invested the maximum possible, could have £43,200 invested in an ISA, with a further £1,500 available from October, plus accrued interest. With many ISAs in the market paying less than two per cent, investors could be missing out on at least £1,162 of tax-free interest which, in this current low interest rate environment, is a significant difference.”

She added: “There is no doubt that investors should review their existing savings and consider transferring their ISAs, to ensure they are maximising their tax-free.”

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