MSE News Comment - Martin Lewis: Will you really gain from the new NISAs?

Herbalus

Fella wrote: »

Plainly it's nothing but excellent news for savers. They can only benefit (the amount they benefit will depend on various factors).

I will massively benefit because it means that having removed all of my savings from ISAs and put them in savings accounts paying minimum 3% (and I'm a non-taxpayer until I graduate in July and get a job....!), it won't take me as long to place them back in the tax-free wrapper when rates do rise.

It's difficult to quantify the benefit, but it means a large number of people should avoid/(have an easier time of) the conundrum of ISAs vs current accounts i.e. keeping building their ISA pots at paltry rates to benefit when the rates rise.

innovate

dtaylor84 wrote: »

But it seems to be entirely ignoring the substantial increase in flexibility afforded by allowing transfers from S&S to cash.

Or even the existence of the S&S option.

edinburgher

innovate wrote: »

Or even the existence of the S&S option.

Absolutely - I think we need to see a bit more financial maturity than just endlessly suggesting that we save more and more cash.

I realise that the topic of investing is one where MSE probably have to tread carefully (as it's a lot easier to give wrong answers), but I can't remember the last time I read commentary where the damaging effects of inflation on cash were mentioned.

Like it or not, we're all going to have to take more personal responsibility for our futures over the coming decades. A big factor will be aiming for a mix of assets to protect our quality of life, not just stolidly relying on cash.

/rant

jimjames

Fella wrote: »

Trying to be controversial / populist by jumping on the "if the Tories said it there must be a catch" theme that Labour are desperately peddling.

Plainly it's nothing but excellent news for savers. They can only benefit (the amount they benefit will depend on various factors).

You've got to be pretty loaded as a couple to pay in £30k per year when the average wage is below that. I'd think anyone who can save that kind of money must be earning 6 figures so the benefit to the average person is pretty small and the high earners will do best.

jimjames

edinburgher wrote: »

Absolutely - I think we need to see a bit more financial maturity than just endlessly suggesting that we save more and more cash.
/rant

In some ways the news is a shame.

With the low rates on offer there seemed to be a bit more maturity and sensible attitudes coming to actually consider S&S ISAs on their merits rather than just cash but that is now all out the window again.

zerog

jimjames wrote: »

You've got to be pretty loaded as a couple to pay in £30k per year when the average wage is below that. I'd think anyone who can save that kind of money must be earning 6 figures so the benefit to the average person is pretty small and the high earners will do best.

We earn £35k each and will save more than £15k per year; though we live rent-free so I guess you could count that as "being loaded"

Herbalus wrote: »

(and I'm a non-taxpayer until I graduate in July and get a job....!)

You will be a taxpayer from 6th April unless you don't get a real job until the start of 2015, or your job pays peanuts.

mikemoate

Typical tory con!! Who will derive any benefit from this? Given the paltry rates on cash isa's at the moment, only those paying 40% tax. Tory friends!!!

slinga

mikemoate wrote: »

Typical tory con!! Who will derive any benefit from this? Given the paltry rates on cash isa's at the moment, only those paying 40% tax. Tory friends!!!

Agree fully.

It's a con by the Cons.

Must be an election coming up in the too distant.

Jonbvn

slinga wrote: »

Agree fully.

It's a con by the Cons.

Must be an election coming up in the too distant.

mikemoate wrote: »

Typical tory con!! Who will derive any benefit from this? Given the paltry rates on cash isa's at the moment, only those paying 40% tax. Tory friends!!!

Why does it have to be cash ISA's only????

Anyway, given that you are both so sure you are being conned, I would be grateful if you could write to your respective MP's requesting that you pay more tax. Additionally, please ask them to transfer your "paltry" ISA allowances to me and my wife;)

ColdIron

Jonbvn wrote: »

Anyway, given that you are both so sure you are being conned, I would be grateful if you could write to your respective MP's requesting that you pay more tax

Hear hear, there's no pleasing some people, I'm pretty chuffed with this 'con'