If Cash ISAs are ended by Government.

MiserlyMartin

masonic said:

If they really want to do something that supports the UK economy / UK plc, then their best bet is probably some sort of equity investment scheme launched via NS&I.

It's about time that they brought back NS&I index linked bonds paying RPI + 1%. Far more useful than an ISA. I still have my old ones but they pay only CPI + 0.05%. Useful when CPI was around 10% and the savings rates were about 2%. Not so much now but we don't know how long CPI will stay this way. BoE do seem to be on a rate cutting cycle again, with no regard to the fact that UK gov policies and the world economic outlook is inflationary. !!

masonic

MiserlyMartin said:

masonic said:

If they really want to do something that supports the UK economy / UK plc, then their best bet is probably some sort of equity investment scheme launched via NS&I.

It's about time that they brought back NS&I index linked bonds paying RPI + 1%. Far more useful than an ISA. I still have my old ones but they pay only CPI + 0.05%. Useful when CPI was around 10% and the savings rates were about 2%. Not so much now but we don't know how long CPI will stay this way. BoE do seem to be on a rate cutting cycle again, with no regard to the fact that UK gov policies and the world economic outlook is inflationary. !!

Index linked gilts are available paying not far off that. I have been buying and will probably continue to do so in the coming months. Could be the first year in over 20 that I invest nothing new into equities.

miller

There have already been discussions on this thread of working around any partitioning of the allowances by parking money uninvested/low-risk in a S&S ISA and the restrictions that existed previously to prevent that. In the same way HMG would need to prevent deposits into a S&S ISA being immediately transferred out to a cash ISA either from the implementation date and perhaps in addition to previous years' S&S subscriptions i.e. an additional layer of complexity.

Twinsdad1844

masonic said:

MiserlyMartin said:

masonic said:

If they really want to do something that supports the UK economy / UK plc, then their best bet is probably some sort of equity investment scheme launched via NS&I.

It's about time that they brought back NS&I index linked bonds paying RPI + 1%. Far more useful than an ISA. I still have my old ones but they pay only CPI + 0.05%. Useful when CPI was around 10% and the savings rates were about 2%. Not so much now but we don't know how long CPI will stay this way. BoE do seem to be on a rate cutting cycle again, with no regard to the fact that UK gov policies and the world economic outlook is inflationary. !!

Index linked gilts are available paying not far off that. I have been buying and will probably continue to do so in the coming months. Could be the first year in over 20 that I invest nothing new into equities.

Whats your thinking behind this please?

masonic

Twinsdad1844 said:

masonic said:

MiserlyMartin said:

masonic said:

If they really want to do something that supports the UK economy / UK plc, then their best bet is probably some sort of equity investment scheme launched via NS&I.

It's about time that they brought back NS&I index linked bonds paying RPI + 1%. Far more useful than an ISA. I still have my old ones but they pay only CPI + 0.05%. Useful when CPI was around 10% and the savings rates were about 2%. Not so much now but we don't know how long CPI will stay this way. BoE do seem to be on a rate cutting cycle again, with no regard to the fact that UK gov policies and the world economic outlook is inflationary. !!

Index linked gilts are available paying not far off that. I have been buying and will probably continue to do so in the coming months. Could be the first year in over 20 that I invest nothing new into equities.

Whats your thinking behind this please?

I've tended to invest in mostly equities, ranging from 70-90% at different times. But when the base rate was dropped to 0.1% during and after the pandemic, I grew more and more concerned about bonds and decided not to hold any. That ultimately proved a very wise decision once inflation began to bite and rates were very quickly hiked 50-fold. I had been invested a little above my risk tolerance through that period, and returns had been very good. Despite doing some de-risking post-US election result last year, I evidently didn't go far enough. I started buying individual bonds when they were on sale in mid-January and got a nice bump from that. But unless a serious crash comes along soon, the equities seem to be looking after themselves and I need to focus on building my defensive assets. I'd rather do this through new contributions than rebalancing. I have my ISA allowance ready and waiting for the new tax year, and it's currently all earmarked for bond holdings. My monthly pension contributions are going into the iShares Up To 10 Year Index Linked Gilt fund. If 2025 turns out to be another good year for equities, I shall need to do the same next year too in order to keep things balanced.

Ocelot

Aretnap said:

Ocelot said:

Kim_13 said:

I have long been in favour of a cut to £6,000 or £12,000, given it’s clearly madness to be able to save more tax free per year than you can actually earn. Either of those would make the limit divisible equally by 12, as Alistair Darling made a point of ensuring at one time. 

£4,000 would be going back to 2010 ish and not equally divisible, so hopefully that isn’t the number.

As I pointed out earlier, 20k is useful to put expiring non-ISAs into. You don't have to save 20k of new money a year.

Though if you have many multiples of £20K lying around in non-ISA accounts waiting to move into ISAs, then clearly either

(1) At some point in your life you must have been earning enough to save many thousands of pounds of new money per year - presumably well over the ISA allowance or it would be in ISAs already; or
(2) At some point in your life you must have been fortunate enough to have had a very large windfall from somewhere

Either way good luck to you and well done, but equally either way "why is the government taxing the meagre savings of a poor, impoverished person like me?" wouldn't really be the line to take.

Not really. I'm 60 this year and have been saving and been frugal since I was 21, little by little. Never been on a big salary.

deepam

What happens to the funds which are already invested in ISAs in previous years?

eskbanker

deepam said:

What happens to the funds which are already invested in ISAs in previous years?

They're left unaffected.

Or the accounts have to be closed.

Or something in between.

Or nothing changes at all.

Nobody knows.

It's all speculation....

Alpine_Star

The big question for me is can my fixed term cash ISAs stay in their cash ISA wrapper when they mature over the next few years.

Kim_13

Far more likely that any changes apply only to new money.