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03/04

Skandia to enhance cash option in time for new ISA rules

Skandia, part of Old Mutual Wealth, today confirms it will enhance the cash option available on its ISA in time for the new rules in July. Skandia will make cash available as a longer term holding, rather than a short term cash deposit facility, with the interest rate rising to approximately 0.40% in time for the new tax year, up from 0.10%. Skandia is looking to secure the highest interest it can in time for the changes on 1st July. 

The changes announced in this year’s Budget mean that from 1st July 2014 people can invest up to £15,000 per annum in an ISA split as they choose between stocks & shares and cash.

Under the new rules investors will now be able to switch back and forth between the different asset classes, rather than having to disinvest from a stocks & shares ISA if they want to transfer to cash. This will offer investors greater flexibility to move between cash and other assets within a single product.

Mike Barrett, platform manager at Skandia comments:Mike barrett

“We are confident, just days after the changes were announced, that our ISA will be ready for the new regime in July. In addition to a wide range of funds, our cash facility will be enhanced so that it will offer the most competitive rate possible.

“98%* of advisers tell us that ISAs are the most effective tax allowances used by their clients. The new rules show the Government is acknowledging this popularity and answering demand for further flexibility. The changing structure is not only great for seasoned ISA users, but also for those who may have previously been hesitant to invest in the stock market as it allows them ‘dip their toe in the water’ within a single product.

“Whilst the new ISA regulations do not come in until 1st July, regular savers can take advantage of the increased limits now by increasing their monthly contributions to £1,250 from Monday 7th April.”

*The Skandia adviser insights survey was conducted in March 2014 and collected responses from 1, 062 financial advisers.

For more information contact

Amelie ShepherdOld Mutual Wealth02380 916 09107834 499 596
Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145076

Notes to Editors:

Old Mutual Wealth

Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK & Italy* and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £119 billion in customer investments (as at 30 September 2016).

Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million customers across the world and has a total of £342.7 billion assets under management (as at 30 June 2016).

*Old Mutual Wealth announced the sale of Old Mutual Wealth Italy to Ergo Italia on 9 August 2016. The transaction is pending completion.

This press release is for journalists only and should not be relied upon by financial advisers or customers. Investments may fall or rise in value and investors may not get back what they put in.