Cash ISAs capped at 12,000 (a year)

mon3ysav3r

Amount under-65s can put into cash Isas (Individual Savings Accounts) capped at £12,000, with the rest of the £20,000 allowance reserved for investments

jungleboy123

why have they gone for under 65 to target? 

eskbanker

Just to be clear (in the context of the thread title), the £12K cap is on annual contributions!

vacheron

jungleboy123 said:

why have they gone for under 65 to target? 

I think that excempting the over 65's was a smart idea, over 65's may not have the timescales nor the security for speculative investments to pay returns.

eskbanker

jungleboy123 said:

why have they gone for under 65 to target? 

Obviously there's the risk of discussion becoming political, but it's long been recognised that over-65s are far more likely to vote than younger folk, so that's unlikely to be a coincidence....

knigma

Any idea what this means for transferring £20k+ from a S&S ISA to a Cash ISA, and how this will be restricted?

flaneurs_lobster

knigma said:

Any idea what this means for transferring £20k+ from a S&S ISA to a Cash ISA, and how this will be restricted?

As ever, the devil will be in the detail. I'm interested in if/how the remaining S&S ISA allowance will be directed to "UK investments" (whatever that means).

mwarby

I guess you could always invest the remaining £8k in a money market fund like CSH2, although it has the downside of no protection in the unlikely event of CSH2 failing

wmb194

mwarby said:

I guess you could always invest the remaining £8k in a money market fund like CSH2, although it has the downside of no protection in the unlikely event of CSH2 failing

This assumes cash-like investments aren't disallowed.

Kim_13

jungleboy123 said:

why have they gone for under 65 to target? 

Because it would be irresponsible to suggest that those in later life should invest in the same way, when they would be more likely to need to access the money to pay for care etc. Nothing should be invested that can’t safely stay there for 5+ years. 

Swipe

flaneurs_lobster said:

knigma said:

Any idea what this means for transferring £20k+ from a S&S ISA to a Cash ISA, and how this will be restricted?

As ever, the devil will be in the detail. I'm interested in if/how the remaining S&S ISA allowance will be directed to "UK investments" (whatever that means).

As far as I'm aware, all she said about UK investments was for providers to make it easier, rather than the rule.