Over 50s double ISA investments after limit rise

Investors over the age of 50 have doubled their lump sum contributions into share-based ISAs following the Government's increase in their allowance to £10,200.

Income funds have benefited the most with contributions increasing by around 130% over the past three months, according to research from Virgin Money.

IMA figures show a record net £23.6bn was invested in retail funds in the 11 months to 30 November 2009 - more than 10 times the amount invested in the same period during 2008.

The surge continued in the three months from 6 October 2009 to 5 January 2010 with lump sum payments by the over-50s increasing by 120% following the change in allowances.

Grant Bather, spokesman for Virgin Money, says: "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."