Cash ISAs capped at 12,000 (a year)

Pat38493

wmb194 said:

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.

I’m not sure this would be possible unless they create a hard stopping point for existing deposited ISA amounts.  I don’t think they would retrospectively change how existing S&S ISA savings can be invested (theoretically they could I guess but typically governments don’t do things like that).  Therefore they would have to say from 2027 you can only sets up a new ISA with the additional restrictions.  Also - from what I understand they want to encourage people to invest in UK investments, so even limiting cash interest on uninvested balances or MMF would not be enough - they would have to say that newly opened ISA can only be invested in UK shares and funds with at least x% of UK based companies or suchlike.

Eldi_Dos

It was hard to hear over the background noise but did the Chancellor cite as a example, someone paying X amount into a Stock and Share Isa since  (i believe )1900 would now be worth £50k more than if they had just paid into a cash Isa.

Edit; should have said 1990.

phlebas192

Eldi_Dos said:

It was hard to hear over the background noise but did the Chancellor cite as a example, someone paying X amount into a Stock and Share Isa since  (i believe )1900 would now be worth £50k more than if they had just paid into a cash Isa.

From Hansard, https://hansard.parliament.uk/commons/2025-11-26/debates/0FD15A2E-84B6-49F0-939A-24B7AABFB798/FinancialStatementAndBudgetReport

"Someone who had invested £1,000 a year in an average stocks and shares individual savings account every year since 1999 would be £50,000 better off today than if they had put the same money into a cash ISA"

flaneurs_lobster

Eldi_Dos said:

It was hard to hear over the background noise but did the Chancellor cite as a example, someone paying X amount into a Stock and Share Isa since  (i believe )1900 would now be worth £50k more than if they had just paid into a cash Isa.

The actual quote 

Someone who's invested £1,000 a year in an average stocks and shares ISA every year since 1999 would be £50,000 better off today than if they'd put the same money into a cash ISA

There's a few questions that could be asked there, of course....

EDIT : Source https://www.gov.uk/government/speeches/budget-2025-speech

Eldi_Dos

Wish I had listened better when I was younger.

Many thanks.

Bridlington1

Malchester said:

At least they have listened to comments about older people using ISAs to provide retirement income. So, being over 65 I will still be able to deposit the full £20,000 in a cash ISA. Being over 65 has some advantages!!!!!!!!

But as a consolation, being in my early 20s I do have the Bath BS 16-25 RS among my collection of savings accounts. I suppose one must try to look on the bright side. 

Pat38493

It’s worth noting that the UK is almost the only country on the world that offers this kind of tax break for risk free return on bank savings accounts, so the UK was always a bit of an outlier here.

Kim_13

Bridlington1 said:

Malchester said:

At least they have listened to comments about older people using ISAs to provide retirement income. So, being over 65 I will still be able to deposit the full £20,000 in a cash ISA. Being over 65 has some advantages!!!!!!!!

But as a consolation, being in my early 20s I do have the Bath BS 16-25 RS among my collection of savings accounts. I suppose one must try to look on the bright side. 

That’s one I’d love to have had but I don’t think it existed when I was under 25. Not 65 either, so worst of all worlds for me.

Saying that the ISA allowance probably won’t bother me any time soon as I’ve less than £12K in cash ISAs total.

alinkliter

vacheron said:

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.

Common sense rather than smart.

DRS1

Eldi_Dos said:

Wish I had listened better when I was younger.

Many thanks.

But back in 1900 there wasn't an ISA to invest through.