The over 50s ISA allowance increase this October caused a bumper ISA month for ISA investments, the Investment Management Association (IMA) has revealed.

According to the figures, gross ISA sales hit £965million in October – the highest October recorded since ISAs were launched in April 1999. It is also the highest month for ISA sales outside of the ISA season (March and April) since June 2000.

Commenting, Richard Saunders, chief executive of the IMA said: “October was the first month in which the over 50s could use their ISA allowance – and it proved to be the highest ever October for gross ISA sales.

“ISA sales are clearly heading for their best year since 2002,” he added.

ISA sales at Interactive Investor coincide with the IMA statistics, Rebecca O’Keeffe, head of investments at Interactive Investor comments: “The amount of money invested in our ISAs this tax year has already significantly exceeded the level of the previous 12 months.

“With a further boost from the higher limit for the over 50s, we expect this to be a bumper ISA season.”

And as tax rises are on the cards, “investors should be using every means possible to maximise their tax free allowance,” Ms O’Keeffe added, “An ISA is therefore a must for anyone with money to save and invest.”

© Fair Investment Company Ltd