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Savings - Stick (at around 2%) or twist (at around 4%)?
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cricidmuslibale said:justwantedtosay said:It's one of those questions that can only be answered in hindsight. I recently rushed into a 1 year fix at 2.7% which seemed wonderful after all these years of 0.5% but am already regretting it.t.
My worry at the moment is that whoever is chancellor next week will do away with tax breaks on savings income. I get why fixed rate ISAs pay less than regular accounts but the difference can be as much as 2% now so it's impossible to justify locking cash into an ISA.1 -
justwantedtosay said:My worry at the moment is that whoever is chancellor next week will do away with tax breaks on savings income. I get why fixed rate ISAs pay less than regular accounts but the difference can be as much as 2% now so it's impossible to justify locking cash into an ISA.
In general, while steering clear of ISAs is often the better option for anyone who wants the best rates and is nowhere near their PSA - for anyone paying 20% tax (or more) on their savings interest and especially for those looking to fix, ISAs are currently the better option and easy to justify. For example - the best 1 year fixed rate at the moment is 4.55% (or 3.64% after 20% tax) and the best 1 year fixed rate ISA is paying 3.85%. Many are also taking advantage of the ability to switch to a better rate which you can do with a fixed rate ISA but not with a normal fixed rate savings account.
If you're on a reasonable wage, have savings tucked away and worried that they might do away with the PSA altogether, then that's even more reason not to dismiss ISAs.1 -
refluxer said:justwantedtosay said:My worry at the moment is that whoever is chancellor next week will do away with tax breaks on savings income. I get why fixed rate ISAs pay less than regular accounts but the difference can be as much as 2% now so it's impossible to justify locking cash into an ISA.
In general, while steering clear of ISAs is often the better option for anyone who wants the best rates and is nowhere near their PSA - for anyone paying 20% tax (or more) on their savings interest and especially for those looking to fix, ISAs are currently the better option and easy to justify. For example - the best 1 year fixed rate at the moment is 4.55% (or 3.64% after 20% tax) and the best 1 year fixed rate ISA is paying 3.85%. Many are also taking advantage of the ability to switch to a better rate which you can do with a fixed rate ISA but not with a normal fixed rate savings account.
If you're on a reasonable wage, have savings tucked away and worried that they might do away with the PSA altogether, then that's even more reason not to dismiss ISAs.0 -
Thread a bit dated now but next Bank of England meeting is very soon and markets expecting around 0.75% increase (at least an increase in the range of 0.5-1.0%)
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Zerforax said:Thread a bit dated now but next Bank of England meeting is very soon and markets expecting around 0.75% increase (at least an increase in the range of 0.5-1.0%)0
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Hi, Sorry just wanted to ask. I have a NSandI account with some premium bonds. I also have just opened a savings account with them and put some money in it but not sure how things work.
Do they use it to give me more premium bonds or is it just a savings account. Thank you
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Mrnkar_2 said:Hi, Sorry just wanted to ask. I have a NSandI account with some premium bonds. I also have just opened a savings account with them and put some money in it but not sure how things work.
Do they use it to give me more premium bonds or is it just a savings account. Thank you1 -
Thank you.0
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Mrnkar_2 said:Hi, Sorry just wanted to ask. I have a NSandI account with some premium bonds. I also have just opened a savings account with them and put some money in it but not sure how things work.
Do they use it to give me more premium bonds or is it just a savings account. Thank you0
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