Banks and building societies are gearing up for a cash Isa war to attract deposits from the over-fifties next month but savers who have already taken out their Isa for this year are likely to lose out.
The Isa allowance is rising from £7,200 to £10,200 from October 6, with the amount that can be saved into cash going up from £3,600 to £5,100. Abbey, HSBC and First Direct are among those poised to launch higher-paying Isas this month, in an attempt to attract billions of savers' cash.
However, the deals are designed to attract savers who have not yet taken out an Isa in anticipation of the rule change. Those who have already opened an account this tax year, and now want to top