MSE News: Cash Isa limit should be raised, says Nationwide

Former_MSE_Helen

"Nationwide is urging the Government to use next month's Budget to double the amount savers can place into cash Isas..."

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Cash Isa limit should be raised, says Nationwide



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marathonic

How is a saver "hard-pressed" if the Cash ISA limit for 2013/14 of £5,760 isn't enough for them?

roddydogs

Whos gonna put money in at 2% or less?

marathonic

roddydogs wrote: »

Whos gonna put money in at 2% or less?

Those saving money for an event where they anticipate requiring access with a couple of years.

For example, if saving for a house deposit and you hope to purchase in 2014/5, you shouldn't really invest in the stockmarket where a sudden drop could delay your plans for 5+ years.

Wywth

I'd like there to be no limit on ISAs, but who is going to pay for all the lost revenue?

I thought ISAs (a progression from PEPs) were first introduced to encourage people to invest in companies.
PEP - Personal Equity Plan.

aleph_0

Why isn't their just a fixed per-person lifetime allowance? At the moment, one person can get tax relief on £60,000 in an ISA built up over many years, whereas a first-time-buyer, able to save >£6k cash per year, does pay tax on some interest.

A fixed allowance of, say, £30k per person, would be much fairer.

Pincher

ISA : Individual SAVINGS Account

If you go by the name, then we should have a PEP for stocks and shares, and an ISA for a deposit account.

When you invest, you need the safety of getting out of stocks and shares and take shelter in cash sometimes. They put a time limit on how long you can hold cash in a stocks and shares ISA, which is just mad. Obviously, you want to have an ISA, in which you can hold cash or stock in any proportion you want.

Ideally, I want to be able to hold commodities.
This would allow me to hedge against rising energy costs
and food prices. If I was allowed to hold gold in the ISA from 2007, I would be laughing at the sterling devaluation.

innovate

Pincher wrote: »

If I was allowed to hold gold in the ISA from 2007, I would be laughing at the sterling devaluation.

You could hold funds that track the gold price, or you could buy gold outside ISAs if that's what turns you on. Nobody is obliged to put their money into ISAs.

VT82

I work for a company that would benefit from what the Nationwide and the Building Societies Association are asking for. I have also never used my S&S ISA allowance. But, playing Devil's advocate and leaving my own interests to one side, I disagree with the recommendation for the following reasons:

• Money in cash ISAs in a bank or building society can only be used to fund house purchases, whereas money in Stocks and Shares ISAs can be used to fund all kinds of businesses in the real economy.
• It costs the Government, i.e. the taxpayer, less to subsidise the capital gains tax on investments than the (higher 20/40%) income tax on savings interest.
• S&S ISAs should provide long term better returns than cash ISAs. So by saying 'use it or lose it' on the S&S ISA allowance, the policy is effectively being cruel to be kind.

gadgetmind

aleph_0 wrote: »

A fixed allowance of, say, £30k per person, would be much fairer.

Other than to those using S&S/cash ISAs as part of their pension planning.

And I'm not sure where your £60k comes from - we have more than that in our ISAs but we have been working on them since they were called PEPs back in the late 80s.

chucknorris

roddydogs wrote: »

Whos gonna put money in at 2% or less?

Me for one, not because I think 2.8% (B Midshires) is good, it isn't. But gaining ISA status would be good for when rates eventually go back up.

EDIT: Although I have to admit that my overall portfolio is light in shares so it is possible that I would still elect to take out a stocks and shares ISA