Savers aged 50 and over have more than doubled their lump sum contributions into stocks & shares ISAs since the Government increased ISA allowances, Virgin Money has revealed.

Since the new ISA allowance was launched on October 6 last year, Virgin Money claims it has seen the number of lump sum deposits by over 50s into stocks and shares ISAs increase by 120 per cent.

In addition, contributions for income funds have increased by around 130 per cent in the three months since the new ISA limit was launched.

Meanwhile, figures released by the Investment Management Association have revealed a net of £23.6billion was invested in retail funds in the 11 months to 30 November 2009, which is more than 10 times the amount investment in the same period of 2008.

Commenting, Grant Bather, spokesman for Virgin Money said: “The decision by Chancellor Alistair Darling to increase the ISA threshold to £10,200 for the over 50s has been very popular.

“With the ISA allowance of £10,200 to be extended to all savers in the new tax year we would urge all investors to consider making the most of the increase in the tax efficient allowance.”

From April 6, the new stocks & shares ISA allowance will be rolled out to all savers, meaning anyone aged 18 or over (16 or over for a cash ISA) can deposit up to £5,100 in a cash ISA and up to £10,200 in a stocks & shares ISA.

© Fair Investment Company Ltd