Budget: £15000 ISA Limit from 01/07 for Cash OR S&S

Archi_Bald

Cash ISA rates will not move into any direction due to the NISA announcements.

They are just savings rates that will move (or not move, as the case may be) roughly in line with the BoE base rate.

scubascuba3

Archi_Bald wrote: »

Cash ISA rates will not move into any direction due to the NISA announcements.

They are just savings rates that will move (or not move, as the case may be) roughly in line with the BoE base rate.

I don't agree, banks have the freedom to offer the rates they like. For example Santander pays 3% on their 123 current account. Not really tied to the BoE base rate is it?
I predict rates will increase, we shall see.

blizeH

Just wanted to confirm, will there be any problems (for example) running two 'NISAs' alongside one another? So keeping it as I have now with an S&S ISA and a cash ISA, and topping up both during the same year? Thanks

DragonQ

Archi_Bald wrote: »

Cash ISA rates will not move into any direction due to the NISA announcements.

They are just savings rates that will move (or not move, as the case may be) roughly in line with the BoE base rate.

The base rate hasn't changed for years, yet we had instant-access cash ISAs offering 4.25% two years ago and the best around right now is about 1.5%. Nothing to do with the base rate.

miller

Funding for lending scheme would be a major factor I'd guess.

love2learn

It's good news for now, but the next time Labour gets in power they'll find a way to tax the wealth accumulated in the ISA's, or if not then it will happen eventually.

Nednats

scubascuba3 wrote: »

I'm guessing the ISA cash rates will increase otherwise people will now switch their money in to stocks and shares. Another clever idea by the chancellor.

The chancellor talked a lot about investment in his speech.

NISAs actual make it easier to invest in S&S as you can now cash out shares without losing the tax free wrapper and possible get a competitive rate to, this makes S&S more attractive.

scubascuba3

love2learn wrote: »

It's good news for now, but the next time Labour gets in power they'll find a way to tax the wealth accumulated in the ISA's, or if not then it will happen eventually.

that won't happen. They can't suddenly tax something that is set up not to be taxed.

jimjames

scubascuba3 wrote: »

that won't happen. They can't suddenly tax something that is set up not to be taxed.

I wouldnt bet on it. They've already done it once with ISAs/PEPs by removing the tax free element of income.

Never say never!

Archi_Bald

No need to shout, scubascuba3. "They" can tax anything they like. The only thing that is generally not done is taxing anything retro-actively. The whole point about budgets is a forward-looking financial plan, and if the country needs more income from tax, nothing will be sacred.