Higher ISAs from next year (this year for 50+)

steveksullivan

BruceyBonus wrote: »

Totally agree. And how is it going to be implemented on the bank/BS computer systems?

What about people who have opened fixed rate accounts already that don't accept further deposits? Will they be allowed to open a new account to save the difference?

And people who turn 50 this year? At least they'll get a birthday present from the Chancellor on their birthday.

Would love it someone can clarify the issue in Bruceys second para ..... probably a bit early though. Just about to open First Direct eISA with this years money .... wonder if they will take the extra after the date applicable for the over 50's

(oops just given my age away!!)

sly_dog_jonah

I think we can all agree that increasing the limits is a good thing, and long overdue. This means individuals will be able to save up to £425 a month (on average) in Cash ISAs.

But I'm sure BS and Banks will be pulling their hair out due to the admin nightmare for this tax year and next. Might that lead to a decline in the premium interest rates that ISA providers offer, compared to non-ISA instant access savings? Traditionally Cash ISAs have been products that customers only withdraw cash from if they really have to, to prevent wasting the allowance. For the past 10 years I've only ever deposited in ISAs, never withdrawn. With this higher allowance I'd be far more inclined to use my ISA as a temporary cash haven to avoid taxable interest, even if I know I need some of the money in 3/6 months.

Jonbvn

sly_dog_jonah wrote: »

With this higher allowance I'd be far more inclined to use my ISA as a temporary cash haven to avoid taxable interest, even if I know I need some of the money in 3/6 months.

I think this could be very important point.

welshmoneylover

Good thinking, I hadn't thought of that.

Also wish I hadn't rushed to open this year's ISA, I went for the halifax @3%

meggsy

"The increased Isa limits will only apply to those aged over-50 this year; however, these savers will not be able to take advantage of the new limits until October to give providers the chance to adjust their systems. Younger savers will have to wait until next year to take advantage of the new limits"

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Baldur

meggsy wrote: »

"The increased Isa limits will only apply to those aged over-50 this year; however, these savers will not be able to take advantage of the new limits until October to give providers the chance to adjust their systems. Younger savers will have to wait until next year to take advantage of the new limits"

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See the HMRC statement in my post #9 above.

meggsy

meggsy wrote: »

"The increased Isa limits will only apply to those aged over-50 this year; however, these savers will not be able to take advantage of the new limits until October to give providers the chance to adjust their systems. Younger savers will have to wait until next year to take advantage of the new limits"

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Thanks Baldur, I should have highlighted the reason for my post

Baldur

Knowing how slowly the administrative wheels of Government and banking institutions turn, I'm pleasantly surprised that they have actually set an October date - less so that it's only applicable to one group of savers.

wadewadewade

sly_dog_jonah wrote: »

Might that lead to a decline in the premium interest rates that ISA providers offer, compared to non-ISA instant access savings?

This is my main concern - I can't see myself withdrawing money from an ISA any time soon, and I really hope that I don't get hit hard on this because of people that do! (No offence to anyone that's planning on doing that, mind you )

edda

Baldur wrote: »

Knowing how slowly the administrative wheels of Government and banking institutions turn, I'm pleasantly surprised that they have actually set an October date - less so that it's only applicable to one group of savers.

Perhaps now that HM Government own a good proportion of some banks, they're seeing things from a different point of view. :rolleyes: