Quick ISA question... 25 October 2008 at 1:44PM edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings 12 replies 934 views

Frugality_2

Is there a limit to your savings total? I.e. if you have an ISA for 20 years at about 60+ thousand, can you just keep going?

So, if you've deposited £3600 for say, 15 years, and you have £54,000, PLUS all the interest, you'd be making (on 6%) £3,240 a year interest alone, thats almost the entire allowance....does this automatically add to the balance but does NOT count as your input limit?

Thanks

Lokolo

That is correct. Hence why you should always have interest from ISAs paid into your ISA.

However ISAs haven't been available for 20 years, but obviously there will be some people with huge amounts in there and a few more years and they will be in the exact position you describe.

Good isn't it!

Frugality_2

Yes it is very good, particularly coming from a left-of-centre government, I wonder what it will be like under the personal savings-friendly Conservatives in a few years time. Hopefully it won't all change.

Also, if you just keep being ISA disciplined, then is it really worth bothering with equities/govt bonds...?

Oblivion

Whilst the stock markets continue to fuel only people's blood pressure, I doubt there will be many wanting to commit their hard-earned cash to Stocks & Shares ISAs.

Wouldn't it be nice if the Chancellor were to announce that the rules were changing next year to allow savers to put all the £7,200 allowance into Cash ISAs.

Dave.

lilac_lady

When did cash ISAs start?

Lokolo

Oblivion - is all yours in cash?

I'm still not sure what % I want in cash compared to S&Ss hm.

And when did ISAs start? No idea, 90s I think.... I think. I shall try to find out.

Baldur

lilac_lady wrote: »

When did cash ISAs start?

1999 from memory.

<Edit> This article appears to corroborate my memory.....http://www.morningstar.co.uk/UK/Funds/article.aspx?lang=en-GB&articleID=51390&categoryID=14

Oblivion

Lokolo wrote: »

Oblivion - is all yours in cash?

I'm still not sure what % I want in cash compared to S&Ss hm.

And when did ISAs start? No idea, 90s I think.... I think. I shall try to find out.

Hi Lokolo. Most of my ISAs are Cash. The wife and I did get talked into taking out an S&S fixed term ISA each with HSBC a few years ago, and of course their nominal value has gone down the pan with the current market movements.

The only thin icing on the cake is that these were capital guaranteed ISAs with also a guaranteed 10% profit at maturity (five year term = 2% per annum), so whilst we could have done better with ordinary savings accounts, we won't have lost out as badly as some when they mature next year.

Dave.

cheerfulcat

Frugality wrote: »

Yes it is very good, particularly coming from a left-of-centre government, I wonder what it will be like under the personal savings-friendly Conservatives in a few years time. Hopefully it won't all change.

I would like it to change for the better - the PEPs and TESSAs that preceded ISAs had much more generous limits.

With regard to your original question about limits on the total - there is currently no limit to the amount you can accrue in an ISA but Gordon Brown attempted to impose a ceiling of £50,000 in his first year as Chancellor...

Frugality_2

cheerfulcat wrote: »

I would like it to change for the better - the PEPs and TESSAs that preceded ISAs had much more generous limits.

With regard to your original question about limits on the total - there is currently no limit to the amount you can accrue in an ISA but Gordon Brown attempted to impose a ceiling of £50,000 in his first year as Chancellor...

That explains it all. I understand the whole TESSA PEP thing was more convoluted but a lot more savings-friendly.

The problem with Brown is he is a deep rooted socialist with a new Labour exterior, the whole idea of private savings and wealth he finds iniquitous because only the state should have wealth, to provide for the less-wealthy. Of course that doesn't win elections so we may have ISAs for some time.

zippeh_2

The problem with Brown is he is a deep rooted socialist with a new Labour exterior, the whole idea of private savings and wealth he finds iniquitous because only the state should have wealth, to provide for the less-wealthy. Of course that doesn't win elections so we may have ISAs for some time.

couldn't have put it better myself!