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Osbourne's new savings scheme

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Comments

  • JoeCrystal
    JoeCrystal Posts: 3,395 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Love the idea, providing we have some rough ideas on what returns they will deliver. I would not mind invest small part of my savings to projects I like. :)

    Other than that, wait and see.

    Cheers

    Joe
  • poorgirl-54
    poorgirl-54 Posts: 236 Forumite
    Thiefffffff
  • poorgirl-54
    poorgirl-54 Posts: 236 Forumite
    maybe
    possible hint to scrap ISA???
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    poorgirl-54 wrote: »
    maybe
    possible hint to scrap ISA???

    I very much doubt that. If this one comes off (big if!) then I'd expect it to run alongside just as ISAs, pensions, NS&I, VCT, EIS and all the rest do.

    Given that HICL's new issue was over-subscribed, there already seems to demand for this kind of investment even without special tax status.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If they can borrow on the markets at sub-2% then why would they pay savers any more than that?

    It just doesn't make sense.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • sorcerer
    sorcerer Posts: 878 Forumite
    I think as ususal the devil is in the detail, let's see what he is offering before anybody get's too excited.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Masomnia wrote: »
    If they can borrow on the markets at sub-2% then why would they pay savers any more than that?

    But that's exactly what they're doing with NS&I linkers.

    Anyway, this is an alternative to more borrowing. HMG want the GDP boost that comes from infrastructure investment but don't want to make the investment themselves. Given that all they need to do is promise to take some of the risk (in something in which there is little risk anyway), decide whether to give tax breaks, and then think up a catchy name, and it's job done.

    If you look at the success of the existing infrastructure funds, and the VCTs that have invested in solar and now other infrastructure, it's clear that the demand is there. Investec have been pushing clients into HICL and BBGI even without any tax breaks or derisking.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    Masomnia wrote: »
    If they can borrow on the markets at sub-2% then why would they pay savers any more than that?

    It just doesn't make sense.
    That's the nature of a deficit reduction policy. It won't let you do things that make sense, but it will force you to do things that don't make sense.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • Sceptic001
    Sceptic001 Posts: 1,111 Forumite
    gadgetmind wrote: »
    Anyway, this is an alternative to more borrowing.
    But it is more borrowing, just in a different form. Presumably the plan is to do an Enron-style off-balance sheet exercise which will not impact on the overall borrowing figure. And that worked out well, didn't it? :mad:
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Sceptic001 wrote: »
    But it is more borrowing, just in a different form

    Only if the government also takes on a contractual commitment to keep paying for use of the infrastructure. In the case of ports, toll roads, etc., they are paid for by the users. However, in the case of non-toll roads/bridges, hospitals, schools, barracks, etc. there usually are 25 year plus contracts in place, which is why I favour vehicles that invest in such things.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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