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ISA

Infinity
Pro
Posts: 5,598
Thanks: 148
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Registered: 19-06-2011

ISA

Time to get your ISA, you can now invest up to £20K from today, for tax free interest.

 

http://www.thisismoney.co.uk/money/saving/article-4381744/Why-t-afford-miss-new-20k-Isa.html

11 REPLIES
Community Veteran
Posts: 7,912
Thanks: 593
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Registered: 02-08-2007

Re: ISA

Waste of time.

The amount of interest is almost nil but the main question is who has £20,000 to invest ? millions of people are up to their neck in debt and many others have no more than a months savings equal to their month's wages.

Always made me laugh when I read ' If you invested £1,000 in 1950 in x company it would be worth a million today'

How many had a £1000 in 1950 which was the price of a semi we were still on ration books then.

Those who do have plenty of money are more likely to be looking at tax dodges, which give far better returns than any isa could.

@Infinity

The above comments are in no way meant to be critical of your post which is a correct statement of fact and is just my view of the current range of isas which I consider to be a waste of time.

Smiley

Community Veteran
Posts: 38,246
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Registered: 15-06-2007

Re: ISA

agreed - and for most people with modest saving the tax free interest allowance is more than enough given the lousy rate of interest we are seeing

Community Veteran
Posts: 5,337
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Registered: 23-09-2010

Re: ISA

Even if I had that sort of money to invest it's not like a big government give away. Not with interest rates being so low.

Minivanman
Hero
Posts: 4,794
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Registered: 04-11-2014

Re: ISA

20k? Chance would be a fine thing.

All views expressed are my own but you can express them too if you want to be right about everything like I am.
Community Veteran
Posts: 6,586
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Registered: 16-02-2009

Re: ISA

I MAY have that much next year, when my mortgage endowment comes out, however it is still only 66% of the mortgage!
Minivanman
Hero
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Registered: 04-11-2014

Re: ISA

Sorry to hear that as I would have been in the same situation at seventy years old (which I am now) but chance and circumstance allowed me to retire mortgage free at the age of sixty.

Here's hoping they both come your way.

All views expressed are my own but you can express them too if you want to be right about everything like I am.
Community Veteran
Posts: 2,911
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Registered: 05-04-2007

Re: ISA

I stopped bothering with ISA's when I moved. I was renting at the time and bought somewhere.

You make more money having an offset mortgage than you would having an ISA.
Infinity
Pro
Posts: 5,598
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Registered: 19-06-2011

Re: ISA

For higher rate taxpayers ISA's can be advantageous...

 

- Higher-rate taxpayers over the PSA limit. For every £100 interest you earn in normal savings you only get £60, whereas in an ISA you get the whole £100. Therefore the normal savings rate would have to be 66% higher for it to beat a cash ISA.

- Top-rate taxpayers. For every £100 interest you earn in normal savings you only get £55, whereas in an ISA you get the whole £100. Therefore the normal savings rate would have to be 82% higher for it to beat a cash ISA.

 

http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax

Community Veteran
Posts: 5,337
Thanks: 607
Registered: 23-09-2010

Re: ISA

So in a nutshell..........

You don't pay tax on ISA's.

And the more the savings limit is raised the more the tax benefit pendulum swings towards the idle rich.

maranello
Aspiring Pro
Posts: 931
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Registered: 11-01-2008

Re: ISA

Who says you have to be idle to be rich Wink

All the research required to find the accounts with the best interest rates, and moving money from one account to another takes a considerable amount of time and effort. Made all the more difficult by having to have multiple accounts to ensure each does not exceed the FSCS compensation limit. Then there's the hidden accounts for anything beyond the inheritance tax threshold. Between all this and a full time job there's never any time for leisure or to spend hard-earned cash.

BTW is there an emoticon for 'tongue-in-cheek' ?

My other car isn't a Ferrari
Community Veteran
Posts: 2,283
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Registered: 04-08-2009

Re: ISA


Infinity wrote:

For higher rate taxpayers ISA's can be advantageous...

 

- Higher-rate taxpayers over the PSA limit. For every £100 interest you earn in normal savings you only get £60, whereas in an ISA you get the whole £100. Therefore the normal savings rate would have to be 66% higher for it to beat a cash ISA.

- Top-rate taxpayers. For every £100 interest you earn in normal savings you only get £55, whereas in an ISA you get the whole £100. Therefore the normal savings rate would have to be 82% higher for it to beat a cash ISA.

 

http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax


 

@Infinity    I think you might be barking up completely the wrong tree somehow!