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

boingy

If this happens, and it's a big if, I predict a whole bunch of funds being created claiming to mimic cash savings without actually using cash or MMFs. I guess it all depends on the exact wording of the restrictions (if any). Of course, none of that stuff will make any tangible difference to any economic recovery.

wmb194

My guess is that it's more likely the overall allowance will be reduced to, say, £10k and no going back to the silly cash/S&S split.

slinger2

That would certainly be more logical IMO. Despite what you might think there's actually more money is S&S ISAs than Cash ISAs (about 60/40 I believe). Of course that's partly because the returns on S&S ISAs have been greater than on cash, but if the government wants to cut back on what some see as the overly generous ISA system they really need to cut back on both.

Suzycoll

I listened to Martin's blog 

I am not a cautious person particularly &  decide to only save in cash ISAS  (moderate amount under 20k). 

I have decided to start withdrawing half my savings from my  cash ISA & put it in a safe at my house ! Call me stupid but .... Thoughts ?

booneruk

Suzycoll said:

I have decided to start withdrawing half my savings from my  cash ISA & put it in a safe at my house ! Call me stupid but .... Thoughts ?

You'll be guaranteed to lose money effectively - inflation will erode the purchasing power of that safe-ensconced cash.

You'll also introduce the cash to theft/fire risk.

eskbanker

Suzycoll said:

I listened to Martin's blog 

I am not a cautious person particularly &  decide to only save in cash ISAS  (moderate amount under 20k). 

I have decided to start withdrawing half my savings from my  cash ISA & put it in a safe at my house ! Call me stupid but .... Thoughts ?

Well, if you insist....

There is absolutely no need for the action you propose - even if you felt the need to withdraw money from a cash ISA (and this really isn't what's suggested at all, and makes no sense), then why wouldn't you use a taxable savings account instead of storing cash at home?

I don't know if this is some sort of wind-up but if not, it's more evidence of the dangers of scaremongering!

MeteredOut

Suzycoll said:

I listened to Martin's blog 

I am not a cautious person particularly &  decide to only save in cash ISAS  (moderate amount under 20k). 

I have decided to start withdrawing half my savings from my  cash ISA & put it in a safe at my house ! Call me stupid but .... Thoughts ?

Please tell us this is a joke!

On what planet can you think the risk of future cash ISAs being limited to £4K mean that withdrawing half of your existing tax-sheltered savings a good choice?

IanManc

Suzycoll said:

I listened to Martin's blog 

I am not a cautious person particularly &  decide to only save in cash ISAS  (moderate amount under 20k). 

I have decided to start withdrawing half my savings from my  cash ISA & put it in a safe at my house ! Call me stupid but .... Thoughts ?

A jeweller who lives near me had great faith in the safe in his house.

That was until four men broke into his house in the middle of the night. With a knife at his throat and with the gang making unpleasant threats concerning his wife and teenage daughters he readily opened the safe and the thieves emptied it and went on their way.

The jeweller no longer brings his work home and the safe has been removed.

I've never had a safe in my house and I'm not getting one.

friolento

Suzycoll said:

I listened to Martin's blog 

I am not a cautious person particularly &  decide to only save in cash ISAS  (moderate amount under 20k). 

I have decided to start withdrawing half my savings from my  cash ISA & put it in a safe at my house ! Call me stupid but .... Thoughts ?

 Do you think it was just careless on his behalf that Martin Lewis did not mention the "under the mattress" option?

Suzycoll

booneruk said:

Suzycoll said:

I have decided to start withdrawing half my savings from my  cash ISA & put it in a safe at my house ! Call me stupid but .... Thoughts ?

You'll be guaranteed to lose money effectively - inflation will erode the purchasing power of that safe-ensconced cash.

You'll also introduce the cash to theft/fire risk.

Yes I realise that . Sadly ( and I know it's stupid) I just don't trust any government with my cash 😔