increasing the ISA allowance won't make me save any more because
a) I can't afford to!
b) there seems little point when interest rates are so dire.
Gordon Brown and his cronies don't want people to save - they want us to save. So increasing the ISa allowance is just an empty gesture - they need to start making banks offer decent interest rates rather than the rubbish out there at the moment.
But I won't hold my breath!
There is no incentive to save. I'm taking advantage of offers to replace household furniture and fitting and therefore spending some of my savings!
I would take advantage of any increase in allowance. I currently take full advantage of the allowance, and would gladly raise my annual saving to whatever new level was set.
Go for it Darling!
I've saved all my life and now have virtually nothing to show for it. What's the point in anyone saving when crass Government can take it all away in a few months.
Entirely agree with you - I have saved all my life and now that I am 60 there is no interest on my savings, my stocks are virtually worthless, my pension fo the moment is safe - but Gordon Brown and his cronies get big salaries, tax free allowances (why?), have their snouts in the trough, have a tax payer funded guaranteed pension, ask people to resign that have crippled the banks BUT do NOT do the SAME THEMSELVES out of touch with the people - I would say so.
Gordon and Alistair are setting the example - spend spend spend by borrowing borrowing borrowing - wonder what would happen if all the savers withdrew their money (after all not earning anything) and kept it in cash - the whole country would go broke.
As you correctly say the interest rates are dire.
BUT, the bank fee for holding the ISA is equivalent to a tax by another name. Also, please bear in mind that you will be charged (around £100 in my case) to close the account!
Yes ISA's are tax free but they are not fee free<
Am I going mad or something?
The interest rates are so low on an ISA that you can get more by paying tax on it with other methods of savings.
The Companies are paying low rates because they have you locked in to the so called tax incentive which is now non existent.
As sure as eggs are eggs, with the Government's current fiscal policies, interest rates will have to rise within the next 18 to 24 months. If you don't use the annual ISA allowance, whatever it might be, it will be gone forever.
Equities are dodgy as dividends are being cut or are disappearing. But they will come back as well so a good cash cushion in an ISA can be used to fund stock market investments once the markets start to turn upwards.
You can't save what you don't have where is the extra cash coming from with this government in charge.
i would save in a cash ISA as this this increases your ISA holding so that when interest rates finally go up, the benefits will be great.
I am one of those who's mind goes to jelly when finance is discussed so am transferring my C&G Flex ISA into a two year fixed at 3%. I have no idea whether this was the best thing to do, but after speaking with three other Building Societies I was totally bewildered.
Nearly all the comments above apply to me in some form or other so fatalism sets in!!Any advice on what to do after April 6th would be appreciated. As C&G are part of the Lloyd's consortium perhaps the next tranche should go elsewhere??
As you say, use it or lose it - even if the return is low it's better than nought ...........
It would certainly encourage me to save more. Whilst interest rates right now are terrible it's not always going to be like that and the more you have in an ISA when they go up in the future the better off you will be. I look at my ISA as a long term investment rather than a short term savings account.
Like they say, you use it or lose it.
YES- I would definately make use of the ISA, cash-ISA in particular and save more. Interest rates on ISA's maybe down now but it will have to go up again at somepoint. If you hunt around you can find rates that pays more than savings. Historically interest rates are general high on borrowing and saving. So even if rates are low now it will probably work out that the cash-isa will give a good return in the long run.
cash-isa is just one of the few completely legal tax free income you can earn and don't have to declare to the taxman. Its a pot of money that does not have to be included in self-assessments or pay as you earn. Invisible money that does not have to scream out how rich you are :), no one needs to be concerned with this money accept you.
If you think rates are really bad might I suggest using up your tax free isa allowance before the end of each tax year, until the rates are good like the good years before the credit crunch.
Onces its gone its gone.
I'm afraid like everything that this government has touched,the Cash ISA market is now finished, savers have removed record funds from Cash ISAs December & January and increasing allowances whilst most Cash ISAs are paying under 1% will not encourage people to save.
again the government is introducing a seemingly helpful incentive, but when you look closer who does it actually help?
those who can afford to fill the current allowance on a yearly basis are hardly the ones in need of help with saving surely? i mean it's definitely useful for those people with that kind of disposable income but the rest of us are increasingly being left with very few real saving opportunities
current accounts are doing away with interest and whilst you can have a fee based account with ok interest, the amount that you have to be putting in to actually make a profit is beyond the reach of those that really need it.
again those that really need the help are bypassed for the middle band that is increasingly solvent, whilst the poor grow poorer
No, I won't save more - I will just put my savings into an ISA cash account rather than elsewhere.
I am newly retired so have savings and the current interest rates on deposits are dreadful.
The reduced interest rates only benefit those people who have caused the problem (those with excess borrowings) and, at the same time, hurt those who have been careful with their money. It all seems like an upside-down world to me.
I won't be saving in a Shares ISA as I really can't see any benefits in my own situation. There are no income tax benefits and no capital gains benefits either. A shares ISAis of no benefit to me.
Where can you get a higher rate than a tax free ISA, after tax? Please tell...
I think Mr Brown thinks people are stupid!
0% interest on £3,600 = Nothing, 0% interest on say £5,000 is still NOTHING, the only benefit I can see is if Interest rates go up, when everybody has to pay for all this borrowing, at least your savings would be tax free.
There is no incentive to save, until the interest rate goes back to at least 5.5%. But Mr Brown likes his FREE for all policy, give money away that we do not have, which has been happening over the years while Labour has been in power. Mr Brown cannot comprehend the old saying "save for a rainy day" well the thunder storms and torrential rain is here and he has built no shelter.
The Country has NO common sense or fundamentals anymore that is why we are in the mess we are in.
No I will not take advantage. Luckily, or sensibly, I took out a tracker mortgage that follows bank of england base rate with no collar and put any savings I had in my offset account to offset interest charged on my mortgage. This has helped me reduce my expected end date of the mortgage.
I am luckier than most including my children who cannot save a penny as they are in fixed rate mortgages with massive exit fees.
Yes I would certainly move as much as allowed into a cash ISA.
I was burnt in 2001 when my £7K in a stocks and shares ISA went down to about £2k and as a recently retired person at the time THAT was not funny.
So I've opted for the cash ISA for three years now and I'm looking forward to the time when rates rise and my money is in the best place-a tax free ISA.
So far I have always chosen fee free accounts with free transfers-they are out there.
Moneysupermarket.com is another good place to look!
I think we have to remember that both the banks and the government want and need us to save, hence the possible rise in ISA limits. They need savers money to operate the system!
So surely although the rates stink at the present moment, when things begin to iron themselves out, ISAs will be among the first to benefit from interest rate increases?
Or am I wrong?
And besides, we have to put money somewhere, and with the investment world being so risky at the moment, if we don't put it into ISAs, we are all going to have very lumpy mattresses!
No, it wouldn't encourage me to save MORE, just divert some of my taxed savings into tax-free savings.
As the Budget is on the 22nd of April and the Tax year begins on the 6th, does anyone have an inkling as to whether any increase would apply for the current tax year.
Or would we have to wait almost another year to take advantage of it?
An increase in what ?
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