Why on earth did the Chancellor not allow an NSI bond to be NISAd?

uk1

I like the idea of the new Pension Bond from NSI @ 4% but I wonder why he didn't complete the neat trick by allowing the puchase to be NISAd to give 4% tax free?

I can only see advanages and cannot see any disadantages.

cepheus

I like the idea of the new Pension Bond from NSI @ 4% but I wonder why he didn't complete the neat trick by allowing the puchase to be NISAd to give 4% tax free? I can only see advanages and cannot see any disadantages

Because he would lose tax revenue. Have you not noticed the tax free cash ISAs are barely worth having with most interest rates less than inflation. Also the equity version could be a trap if the market is in an equity bubble fueled by quantitative easing.

Also note that 4% fixed five year rate isn't that large if interest rates rise

uk1

I think it will be 3 year not 5 year for the 4% and I really don't see any loss whether a saver chooses a bank or NSI vehicle to use their annual NSIA allowance.