Martin Lewis: Is the £20,000 cash ISA limit about to be killed off?

boingy

otherwayup said:

dunstonh said:
... Cash ISAs don't aid the economy ...

Surely the cash given to the Cash ISA provider is ultimately invested (at their risk) to provide the interest return.  At the end of the day, someone's investing/speculating/doing business.

Don't forget that dunstonh is an IFA and would not make a living if everyone just stuck their money in cash ISAs. 

Maynardkj

Apparently the reason for this suggestion was that they want more money to go into Stocks and Shares. If thats the case they would do better to encourage those who already invest in Stocks and Share to increase what they invest by doubling the £20k and leaving  the Cash ISA at 20K as apparently this invested money is used by the banks to help with mortgages and similar funds.

Ultrasonic

Maynardkj said:

Apparently the reason for this suggestion was that they want more money to go into Stocks and Shares. If thats the case they would do better to encourage those who already invest in Stocks and Share to increase what they invest by doubling the £20k and leaving  the Cash ISA at 20K as apparently this invested money is used by the banks to help with mortgages and similar funds.

Above it was discussed that only something like 3% of people use the current £20k limit. The proportion who could use £40k would be significantly smaller.

bristolleedsfan

Maynardkj said:

Apparently the reason for this suggestion was that they want more money to go into Stocks and Shares. If thats the case they would do better to encourage those who already invest in Stocks and Share to increase what they invest by doubling the £20k and leaving  the Cash ISA at 20K as apparently this invested money is used by the banks to help with mortgages and similar funds.

https://petition.parliament.uk/petitions/724592

Hoenir

bristolleedsfan said:

Maynardkj said:

Apparently the reason for this suggestion was that they want more money to go into Stocks and Shares. If thats the case they would do better to encourage those who already invest in Stocks and Share to increase what they invest by doubling the £20k and leaving  the Cash ISA at 20K as apparently this invested money is used by the banks to help with mortgages and similar funds.

https://petition.parliament.uk/petitions/724592

More important matters for Parliament to debate. 

Kim_13

otherwayup said:

dunstonh said:
... Cash ISAs don't aid the economy ...

Surely the cash given to the Cash ISA provider is ultimately invested (at their risk) to provide the interest return.  At the end of the day, someone's investing/speculating/doing business.

In the case of fixed rate products, loaned out for mortgages. So it may not directly aid the economy, but if that money wasn’t there, the consequences would be negative for young people in particular (who are likely to need larger mortgages, and which will be given only at higher rates if at all when lending is tightened.) 

bristolleedsfan

Kim_13 said:

otherwayup said:

dunstonh said:
... Cash ISAs don't aid the economy ...

Surely the cash given to the Cash ISA provider is ultimately invested (at their risk) to provide the interest return.  At the end of the day, someone's investing/speculating/doing business.

In the case of fixed rate products, loaned out for mortgages. So it may not directly aid the economy, but if that money wasn’t there, the consequences would be negative for young people in particular (who are likely to need larger mortgages, and which will be given only at higher rates if at all when lending is tightened.) 

Whilst that is the line Building Societies are putting out I think Treasury are confident that reducing Cash ISA limit will merely result in high level of funds being in taxable accounts rather than Tax free account.

dunstonh

bristolleedsfan said:

Kim_13 said:

otherwayup said:

dunstonh said:
... Cash ISAs don't aid the economy ...

Surely the cash given to the Cash ISA provider is ultimately invested (at their risk) to provide the interest return.  At the end of the day, someone's investing/speculating/doing business.

In the case of fixed rate products, loaned out for mortgages. So it may not directly aid the economy, but if that money wasn’t there, the consequences would be negative for young people in particular (who are likely to need larger mortgages, and which will be given only at higher rates if at all when lending is tightened.) 

Whilst that is the line Building Societies are putting out I think Treasury are confident that reducing Cash ISA limit will merely result in high level of funds being in taxable accounts rather than Tax free account.

Plus, we need to remember that the bulk of mortgages use the money markets for funding.  Not deposits.