tax exempt savings?

franney

That clarifies things a bit more for me, thankyou, i did not really understand that about the Scottish Friendly savings plan

My partner was wanting something similar to his LVFS plan but it would seem that he would be better off with an ISA, as he'd get more back for his monthly saving.
On the downside it would probably need more maintaining as interest rates rise and fall, that's if he wants to make the most of it.
I will sit him down and talk at him tonight, hopefully he can make use of this years ISA allowance before it's too late.

Thanks again for explaining things, i'd be lost without this place!

dunstonh wrote:

You can have as many accounts with a provider as you like.

Scottish Friendly with profits savings plan shows past performance over the last 10 years of 4.7%. Because it is linked to stockmarket performance, the amount you get in future will be different to that. This is exactly the same as the LVFS plan you held before. It is likely to be lower than in the past.

On a risk scale of say 1 to 10 with 1 being lowest and 10 being highst, you would place this in risk rating 5 to 6. A Cash ISA would be risk rating 1 - the lowest.

These friendly society savings plans are not deposit based and do not pay interest. They pay bonuses depending on the performance of their investments.

Cash ISAs are an annual allowance on a pay as you go basis. There is no fixed term. A standing order for £20pm, for example, could go on until further notice. Whether this be 1 year or 10 years.

franney

I don't need an ISA, i don't pay tax, i just need to find a savings account for when my Egg introductory rate ends .
My partner on the other hand does pay tax and i've just been to the MoneySuperMarket to take a look at ISA accounts for him, let's hope he can make more sense of the technical side than i do eh?

Thanks again for the advice, it is much appreciated by this moneyignoramus!

lipidicman wrote:

If you mean can YOU have two Regular Savers from the Halifax, then no. But you could have one and your partner could have one too.

Couldnt see 4.7% with scottish friendly, but you could get 5%+ in an ISA. If you dont have an ISA then GET ONE, it should be the first port of call for any saver (who pays tax or might do in the near future). The only exceptions are the rather limited fix rate savers which can beat them in the short term.

dunstonh

Everyone should consider ISAs before normal savings accounts. What happens if a future budget decides to remove tax free interest on savings accounts to non tax payers? Of course, a tax free product can lose it's tax free status as well but its less likely. Saying that, Gordon Brown removed the tax free status of pensions, raising £5 billion a year. So anything is possible.

lipidicman

dunstonh wrote:

Saying that, Gordon Brown removed the tax free status of pensions, raising £5 billion a year. So anything is possible.

Did I miss this? what?

lipidicman

franney wrote:

I will sit him down and talk at him tonight

with? or did you really mean at?

franney

Good plan, i'll move some of my savings over to an ISA too, thanks for the advice, my problem is i am no good at thinking ahead and just think of things in the here and now and not what could happen in the future

dunstonh wrote:

Everyone should consider ISAs before normal savings accounts. What happens if a future budget decides to remove tax free interest on savings accounts to non tax payers? Of course, a tax free product can lose it's tax free status as well but its less likely. Saying that, Gordon Brown removed the tax free status of pensions, raising £5 billion a year. So anything is possible.

franney

lipidicman wrote:

with? or did you really mean at?

No, i meant at *lol*
Hopefully i will be able to make some sense and explain his options

dunstonh

lipidicman wrote:

Did I miss this? what?

He did it in his first budget. It didnt get much coverage at the time as Conservatives were in a state and no-one outside of financial services picked up on it.

Its been getting greater coverage recently though. Much of it due to increase of the pensions gap which actually equals the amount he has taken out of pensions.

lipidicman

Ah thats what the cons and libs say when he says he is encouraging saving! They say he plundered 5 billion from pensions, right?

cheerfulcat

lipidicman wrote:

Ah thats what the cons and libs say when he says he is encouraging saving! They say he plundered 5 billion from pensions, right?

That's 5 billion a year...