Budget 2010: Isa savings limits to rise each year in line with inflation 24 March 2010 at 1:02PM edited 24 March 2010 at 2:20PM in Savings & investments 16 replies 3.4K views

Former_MSE_Rose

This is the discussion thread for the following MSE News Story:

Budget 2010: Isa savings limits to rise each year in line with inflation

jimbow25

Good news though it's a shame they never thought of doing it whilst it was £3,000 for the first 10 years or so.

I wonder how they'll round it. Or whether it'll be "everyone can invest exactly £5227.50 in a Cash ISA"....

wizk1

Like everything else in the Budget, it doesn't really help the average Joe. A lot of us don't have several thousand pounds to save. Even if we do, the interest rates are pathetic, even if they are tax-free.

tangsman

When are the government going to increase the FSCS £50K protection limit?
People who have saved in Cash ISA's from day one and got good interest rates over the years now have over £50K in their accounts. For a government backed savings scheme the saver really should be protected. Thought this matter may have been addressed in the Budget today.

Reaper

The government does not set the protection level on the FSCS payments, nor do they provide the funds to pay out. Instead it is funded by its members. Only if the financial institutions agree could the limits be put up and I think that unlikely at present as they have had to cough up a lot recently.

cloud_dog

wizk1 wrote: »

Like everything else in the Budget, it doesn't really help the average Joe. A lot of us don't have several thousand pounds to save.

But built up over time then it very much does help the average Joe just maybe not right now. I know itr certainly helps the average Gampy/Ganny Joe.

wizk1 wrote: »

Even if we do, the interest rates are pathetic, even if they are tax-free.

Yes atm they are but but people soon forget the better rates they were receiving and will again, I'm sure.

STRAWB

Halifax offered me 2 year fixed at 3.5% today

RayWolfe

Wonder why MSERose does not know that there is a specific ISA Forum.
No wonder others get it wrong!

Old_Wrinkly

Reaper wrote: »

The government does not set the protection level on the FSCS payments, nor do they provide the funds to pay out. Instead it is funded by its members. Only if the financial institutions agree could the limits be put up and I think that unlikely at present as they have had to cough up a lot recently.

If the EU said 'the new limit is £100K (or more likely 100K Euros), get on and implement it', then it would happen (eventually) whether the financial institutions agree or not.

globetrotter2010

Please bear with me I am now totally confused!:mad:

I have the full years ISA avaliablity for me to use this year ( 2009 2010)( I have no ISA for this year) and want to invest the full amount of cash possible into a cash ISA before the April deadline. I am56 yrs old so can as I understand I can put £5100 into a cash Isa for this year.

Ok so far so good. I was expecting to do the same after April.
I presume that is all correct, the bit that confuses me is where it says on this site that for every £1 cash ISA I use I get a £1 reduction in the shares ISA allowance. So I presume if I get a full £5100 cash ISA I am not allowed to buyt any shares ISA?

Quote "
The cash Isa rate is rising from £3,600 to £5,100 at the same time, which we already knew. The limits increased by the same margins last October for the over 50s.
You'll be able to invest up to £10,200 per tax-year in a stocks and shares Isa from April, though for every £1 you put in a cash Isa, you lose £1 in your stocks and shares allowance."


Can someone tell me who much I can invest this year 2009-2010 and how much next year 2010-2011 in a cash ISA, and likewise if I do want to take the offer of shares ISA's for each year what amount would I be allowed to invest in them for the years 2009-2010 and 2010-2011?



Sorry to ask an obvious question but I am new to the IS a game.:eek:
Many Thanks
Mike

shrewsaver

globetrotter2010 wrote: »

Ok so far so good. I was expecting to do the same after April.
I presume that is all correct, the bit that confuses me is where it says on this site that for every £1 cash ISA I use I get a £1 reduction in the shares ISA allowance. So I presume if I get a full £5100 cash ISA I am not allowed to buy any shares ISA?

No this is not correct, you have an allowance of £10,200 tax-free (£5,100 in a cash isa and £5,100 in a stocks and shares isa).

However you can put more into a shares isa than a cash isa as long as the £10,200 limit is not exceeded so say you put £7,000 into a stocks and shares isa you can only put £3,200 into a cash isa.

Hope this helps.