Experts discuss the complicated new ISAs on BBC Business Breakfast To make matters worse, banks and financial institutions are making it harder for investors by distracting savers from the real issues with a flood of 'pre-Isa accounts. Isas will replace both Peps and Tessas as a tax-free incentive to save when they come into force on 6 April. They will combine under one umbrella the tax-free environment for saving via cash deposits and growth investments like shares and share funds.
Savers have a number of issues to consider.
But this does not necessarily mean decisions have to be made before 6 April. The first thing to note is that investors in existing Peps and Tessas aren't required to do anything in advance of the change. Peps, Tessas carry on The advent of Isas means no new Peps or Tessas can be opened after that time but existing accounts will carry on until they mature or are closed by savers at a time of their own choosing. While no new money can be added to ongoing Peps, contributions to Tessas can continue until their 5-year maturity date rolls around. Investors should also note that they can still switch any existing Peps from one manager to another after next month's deadline.