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

xylophone

Plus, if you are a low earner, then you can earn £5000 or more a year in interest without paying tax.    So, why do you need more with a Cash ISA?

Maybe to protect the position of your widow/widower?

friolento

Existing thread on the subject: https://forums.moneysavingexpert.com/discussion/6603939/martin-lewis-is-the-20-000-cash-isa-limit-about-to-be-killed-off

Ultrasonic

Hoenir said:

Few people have the resources to deposit £20k a year. 

If 'few' = 1.6 million people going by the following as reference:

ISAs turn 25: Who holds them and how much have they got? | AJ Bell

eskbanker

Ultrasonic said:

Hoenir said:

Few people have the resources to deposit £20k a year. 

If 'few' = 1.6 million people going by the following as reference:

ISAs turn 25: Who holds them and how much have they got? | AJ Bell

At the risk of getting into 'lies, damned lies and statistics' territory, that's only about 3% of the UK adult population, so relatively few....

Ultrasonic

eskbanker said:

Ultrasonic said:

Hoenir said:

Few people have the resources to deposit £20k a year. 

If 'few' = 1.6 million people going by the following as reference:

ISAs turn 25: Who holds them and how much have they got? | AJ Bell

At the risk of getting into 'lies, damned lies and statistics' territory, that's only about 3% of the UK adult population, so relatively few....

I did appreciate that when posting but it's still a very long way from a negligible number to just be dismissed though I'd suggest.

eskbanker

Ultrasonic said:

eskbanker said:

Ultrasonic said:

Hoenir said:

Few people have the resources to deposit £20k a year. 

If 'few' = 1.6 million people going by the following as reference:

ISAs turn 25: Who holds them and how much have they got? | AJ Bell

At the risk of getting into 'lies, damned lies and statistics' territory, that's only about 3% of the UK adult population, so relatively few....

I did appreciate that when posting but it's still a very long way from a negligible number to just be dismissed though I'd suggest.

Not sure if it was being dismissed as such, I read it as simply adding some context to the amount of airtime given to potential changes to a limit that isn't relevant to the vast majority of the population!

Ultrasonic

eskbanker said:

Ultrasonic said:

eskbanker said:

Ultrasonic said:

Hoenir said:

Few people have the resources to deposit £20k a year. 

If 'few' = 1.6 million people going by the following as reference:

ISAs turn 25: Who holds them and how much have they got? | AJ Bell

At the risk of getting into 'lies, damned lies and statistics' territory, that's only about 3% of the UK adult population, so relatively few....

I did appreciate that when posting but it's still a very long way from a negligible number to just be dismissed though I'd suggest.

Not sure if it was being dismissed as such, I read it as simply adding some context to the amount of airtime given to potential changes to a limit that isn't relevant to the vast majority of the population!

There will of course be A LOT more who save >£4k, so the signifance of any potential change will depend on what any new threshold may be.

slinger2

Another issue is that if it's announced in the autumn that there'll be a big difference between the allowance for the S&S ISAs and the Cash ISAs from April 2026 (say £20k to £4k, and a ban on transferring S&S ISAs to Cash ISAs per discussion above), isn't that going to encourage some people to transfer some of their S&S ISA money to Cash ISAs before April 2026, since they'll know that they won't ever be able to do it again (unless the rules change again). I'm thinking of folk about retirement age who perhaps would be wanting to gradually move more into cash as they got older.

masonic

slinger2 said:

Another issue is that if it's announced in the autumn that there'll be a big difference between the allowance for the S&S ISAs and the Cash ISAs from April 2026 (say £20k to £4k, and a ban on transferring S&S ISAs to Cash ISAs per discussion above), isn't that going to encourage some people to transfer some of their S&S ISA money to Cash ISAs before April 2026, since they'll know that they won't ever be able to do it again (unless the rules change again). I'm thinking of folk about retirement age who perhaps would be wanting to gradually move more into cash as they got older.

Yes, it seems infeasible to immediately ban transfers from S&S to cash ISAs, although the window of opportunity could be quite short (there is of course plenty of time in advance of the budget).

eskbanker

Ultrasonic said:

eskbanker said:

Ultrasonic said:

eskbanker said:

Ultrasonic said:

Hoenir said:

Few people have the resources to deposit £20k a year. 

If 'few' = 1.6 million people going by the following as reference:

ISAs turn 25: Who holds them and how much have they got? | AJ Bell

At the risk of getting into 'lies, damned lies and statistics' territory, that's only about 3% of the UK adult population, so relatively few....

I did appreciate that when posting but it's still a very long way from a negligible number to just be dismissed though I'd suggest.

Not sure if it was being dismissed as such, I read it as simply adding some context to the amount of airtime given to potential changes to a limit that isn't relevant to the vast majority of the population!

There will of course be A LOT more who save >£4k, so the signifance of any potential change will depend on what any new threshold may be.

True - the article states that the most recent annual cash ISA subscriptions averaged at £4,329.46.