Isa Increase ..when ?

rb10

p00hsticks wrote: »

It was political - the argument being that retired people who often don't have mortgages but rely on savings to provide monthly income were particularly badly affected by the drop in interest rates.

And the true reason being that the Government wanted to get the over 50s on their side for the general election next year.

financial_illiterate

And the additional interest on £1500 over six months is going to swing it for them?

rb10

financial_illiterate wrote: »

And the additional interest on £1500 over six months is going to swing it for them?

Most people don't sit down with a calculator and work out how much it will actually give them. It's just good PR. The Government hope (probably correctly), that most people will see it as something that will make them better off, whilst it doesn't actually cost the Government much in lost tax revenue.

bobcurtis

There is a major problem with this increase, I am waiting until October because of this. If you have already put £3600 in a fixed rate ISA, usually the rules say you can not add to it. This means in October you will not be able to add the extra £1500. As you are only allowed to invest with one ISA provider a year, you will have lost the extra allowance for this year. I am not sure if you can hold a separate ISA with the same provider for the extra £1500, does anybody know the rules on this?

Iconic

bobcurtis wrote: »

There is a major problem with this increase, I am waiting until October because of this. If you have already put £3600 in a fixed rate ISA, usually the rules say you can not add to it. This means in October you will not be able to add the extra £1500. As you are only allowed to invest with one ISA provider a year, you will have lost the extra allowance for this year. I am not sure if you can hold a separate ISA with the same provider for the extra £1500, does anybody know the rules on this?

There was a guide to topping up your ISA in yesterdays Sunday Times. It appears people who have already taken out fixed rates with Lloyds, First Direct and others will be able to top up in October.

https://www.timesonline.co.uk/tol/money/savings/article6822914.ece

Jonbvn

Interesting article in the Times about existing ISA holders losing out due to this change in the ISA rules.

http://www.timesonline.co.uk/tol/money/savings/article6822913.ece