Muppet Money

colsten

Archi_Bald wrote: »

The 'facts' used in the Henderson-sponsored article seem to be somewhat similar to data about the savings market that the FCA published earlier in the year.

Thanks for reminding me of that FCA report. I did some numbers on that back in January in http://forums.moneysavingexpert.com/showpost.php?p=67518183&postcount=14 which show just how much more people could get for themselves.

Mistermeaner

My nationwide cash isa just dropped from 2.5% to 1.25%

I'm a high rate tax payer and work long hours, often several nights away in Europe a week. Oh and I'm a single dad too.

Can't be bothered with the multiple high interest accounts and / or tax faff for a few extra quid. Got my isa stuff out today with view to moving, best alternative is post office at .25% extra per year, on a balance of 6000 that's about 15quid a year and today made the decision it's just not worth the hassle.

littlerock

My Northern Rock (Virgin Money) ISA dropped to .75% when its fixed term expired end of last year. My Barclays ISA pays 1.28%. Where can I get 3% with no risks?

jimjames

littlerock wrote: »

My Northern Rock (Virgin Money) ISA dropped to .75% when its fixed term expired end of last year. My Barclays ISA pays 1.28%. Where can I get 3% with no risks?

Not in an ISA but current accounts.

Even better than 3%, you can get 5% and 4% on chunks of money. Really depends how much you have in your ISA.

But 5% tax is still better than 0.75% regardless of your tax rate.

ggb1979 wrote: »

Can't be bothered with the multiple high interest accounts and / or tax faff for a few extra quid. Got my isa stuff out today with view to moving, best alternative is post office at .25% extra per year, on a balance of 6000 that's about 15quid a year and today made the decision it's just not worth the hassle.

Entirely your choice but it's not £15 per year you're missing out on.

Current Acc = £6000@5% = £300 gross, after 40% tax = £180

ISA = £6000@ 1.25 = £75

I'd prefer to have £100 in my pocket for a little work but others obviously don't.

Mistermeaner

jimjames wrote: »

Not in an ISA but current accounts.

Even better than 3%, you can get 5% and 4% on chunks of money. Really depends how much you have in your ISA.

But 5% tax is still better than 0.75% regardless of your tax rate.



Entirely your choice but it's not £15 per year you're missing out on.

Current Acc = £6000@5% = £300 gross, after 40% tax = £180

ISA = £6000@ 1.25 = £75

I'd prefer to have £100 in my pocket for a little work but others obviously don't.

All fair point. If this tax free allowance on savings comes in ill probably do something about it.

Scarpacci

colsten wrote: »

If he had charged a bit less for his products, we wouldn't need to feel the need to elevate himself and his wife to near sainthood by supporting all those charities.

Of course given the full picture we have now of Bill Gates' wealth and its eventual destination, to have made less money at Microsoft would in effect be a somewhat perverse redistribution of money from sick and poor people in Africa back to relatively more well off people in Western societies who can afford computers, most of whom are business customers anyway.

mgdavid

ggb1979 wrote: »

My nationwide cash isa just dropped from 2.5% to 1.25%

I'm a high rate tax payer and work long hours, often several nights away in Europe a week. Oh and I'm a single dad too.

Can't be bothered with the multiple high interest accounts and / or tax faff for a few extra quid. Got my isa stuff out today with view to moving, best alternative is post office at .25% extra per year, on a balance of 6000 that's about 15quid a year and today made the decision it's just not worth the hassle.

If Labour get in they will up your income tax - perhaps you'll think again then.
Where's the bother or hassle to open a 123 account paying 3% on £20k?

Mistermeaner

mgdavid wrote: »

If Labour get in they will up your income tax - perhaps you'll think again then.
Where's the bother or hassle to open a 123 account paying 3% on £20k?

40% tax making 3% = 1.6% vs 1.25% in isa as is, hassle in changing all dd's and standing orders (in and out )

God forbid Labour get in, not just for me personally but for wealth and particularly future wealth of the UK.

Archi_Bald

ggb1979 wrote: »

40% tax making 3% = 1.6% vs 1.25% in isa as is, hassle in changing all dd's and standing orders (in and out )

But you don't have to move any DDs, and setting up a couple of SOs doesn't really take long?

But leaving that aside - couldn't you increase your pension contribution (thereby reducing your taxable income), at least with part of the money you'd put into an ISA?

And/or put some of your money into an S&S ISA?

Mistermeaner

Archi_Bald wrote: »

But you don't have to move any DDs, and setting up a couple of SOs doesn't really take long?

But leaving that aside - couldn't you increase your pension contribution (thereby reducing your taxable income), at least with part of the money you'd put into an ISA?

And/or put some of your money into an S&S ISA?

Forgive my shoddy maths it's 1.8% but point is same.

Yes your correct re pension etc; I pay heavily into my pension (27%) and also have an s+s isa, my point was about cash isa vs current accounts in isolation and the fact that at amounts below say 10k, for a high rate tax payer who already has a million other things to do the effect is marginal and can be achieved by far more simple things like changing insurer or energy supplier.

In ideal world we would all do all the best things but when resource is tight you have to look to greatest impact for minimal effort.

Maybe I'm just lazy