With interest rates at a record low and savers struggling to earn a good return on their money, is the Budget announcement of a £3,000 increase in the annual ISA allowance – taking it from £7,200 to £10,200 – enough to help?

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Community

Absolutly not

Not too many people are going to invest in stocks and shares ISA at the present time, it might be useful in 2/3 years time if thinga improve.

The £1500 increase in Mini Cash ISA at say 3.2% will net about £48pa i.e. nothing when compared to all the money given back per month to mortgage holders who are laughing all the way back to the bank.

Well said. The best thing that can be done for savers is to increase interest rates. However, as has been said often in the past year, savers who have tried to be thrifty and (truly!) prudent with their income are being expected to sacrifice to save those who lived in "never-never land", with no sense of personal responsibility. Okay for our "honourable" members who appear to be able to chuck everything from a sink plug to a Plasma screen TV on their "legitimate expenses" and who, if the sub-Prime Minister has his way, will be paid for doing a job - and then paid extra for turning up to do it!!

The sooner we are rid of this fiscally-ignorant shower of acquisitive, self-serving, trough-dwellers, the better for all.

So when can i pay this extra into my cash ISA as i am over 50 as i have already paid in £3600 this year on 10th April ?

C'mon, Truthseeker - don't be shy. Tell us what you really think!

Am I missing the plot here ? £3000 in a cash isa at current rates of say 3% gives a return of £90 interest an isa saves tax at 20% for a standard rate tax payer so the benefit is £ 90 x 20 % = £18 per annum. This will really help us poor savers can't decide what to spend it on ,but wait 5p on a bottle of wine and 2p on a litre of petrol oh dear its all gone already !!

Aw shucks!!! Why don't you just try to guess??!! :-) (Clue: I am not a fan of either Gordon or his puppet, Darling Alastair! I should mention that neither am I a member of any other political party; and that I have cast my vote in favour of many of them - except Labour - over the years.)

As Cash ISA Accounts all pay much less interest than Non Isa Accounts this is all a farce anyway. A non ISA account paying 4% gives me a net 3.2% income which is better than an ISA account paying 3%. I wonder why ISA accounts always pay less interest than non ISA accounts?

Hi keenerwalker

I've just checked the details about the new ISA limit and you will be able to invest the additional money in your ISA from 6th October.

Clare

The 6th October cant be right can it?. I thought the chancellor said immediately for the over 50,s.

Many savers especially those on fixed incomes (ie. Pensioners) have been affected badly by the interest rate cuts so why not make ALL interest earned on the first £100,000 tax free to savers over sixty years old who are the real victims of the Banking failure.

Hi lesrob2,

The actual quote from the Chancellor in yesterday's speech was: "This new limit will be introduced this year for those aged 50 or over, and will come in next year for everyone else."

As is often the case with these sorts of things, the detail and clarification appears afterwards and it would appear that the over-50s will only be able to add to their ISA allowance from October 6, 2009. For everyone else it will be from April 6, 2010.

Also, don't forget that there's still time to submit your questions for this afternoon's live webchat at 3.30pm when Clare Francis will talking to Yvette Cooper MP, Chief Secretary to the Treasury about yesterday's Budget. A great opportunity to put your questions to the Government.

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Cheers,
Graeme Delap, Community Editor,
graeme.delap@moneysupermarket.com

Vote for your Community Star: Community Stars 2009

In response to Littlerw and Truthseeker

The whole idea of ISA's is to save for tomorrow using allowances that are only available today. If this allowance is not used it is lost. Not just for now but forever. If you are 50 then between now & the age of 65 it is possible to save an additional £153,000 in a TAX FREE environment.

Yes simple calculation tells me that 15 * £10,200 = £153,000

Now lets use your 3.2% which is quite easy to gain in very safe stocks especially in today's market and continue the arithmatic through to the age of 64, 65 being the next birthday... perhaps retirement.

Did you think ahead how much that would be worth - I did and it works out £198,675 and that doesn't take account of any increase in dividends nor capital gain during that time.

As much as I think this government are the cause of today they have just given me a very nice opportunity to save for my pension. My Pension is pants, why because they followed each other like sheep and my Pension has gone down the pan like most people in the country. Unlike Politicians who always have a nice nest egg no matter how long that actually work for or what state they leave the country in.

As for your stupid comment about mortgage holders - I also come into this category. I am one of them Buy to Let Landlords with a nice bundle of mortgages and property that has artificially dived when builders started to ask too much for their developments. My assesment of my portfolio is pretty much in line with the market value but as for laughing all the way to the bank how wrong can you be.

FACT:- Did you know that over 50% of mortgage lenders in this country have FIXED RATE mortgages. Some of mine are fixed until 2010 and cannot be changed. So no many mortgage holders are not "laughing all the way to the bank" at all. I am very fortunate that I have decent tenants, decent properties and decent rents. As you are not a mortgage holder I guess you may be a tenant.This is why you are jealous at those who have done it right. Those who can save & those who do have mortgages.

My portfolio is in a very happy state & has been for many years with decent long term tenants, one of which who left a few years ago and then asked to come back to my next vacancy... why... because he was being ripped off by agents as I used to be when they looked after my properties. So in a property downturn I do hope they all lose their jobs.

There is no room for wasters in this country, those who won't work should be given a job. Those who can't work should have a valid reason. Many of the pensioners of this country have worked hard, fought hard and what have they got for it... Not a lot.

Stop being being jealous and do something better with your time.Perhaps even save a little for the future.

Perhaps if you had thought a bit more you might have guessed I am a pensioner, instead of assuming I am 50-65 age group.. I had previously saved for retirement but like many others is getting very little from investments. The new cash ISA rates will return the numbers I stated

I dont know of anyone in my age group putting much into the stock market at present, certainly my advisor who has in the past done well does not advise it at present.

As far as mortgages are concerned I have worked ,saved , and now own my own house, so no benefits for me. While there are people who decided to fix their mortgages, many others are on trackers and are effectively buying their houses for nothing.

So as far a I am concerned pensioners have got virtually nothing from this budget, certainly investing £10200 if they have it, is more likely to loose than gain in the present environment, so is not of great value to many pensioners.

Therfore I would suggest your last sentence is somewhat insulting, and make sure in future you know the facts before opening your big mouth.

Hi Clare,

Thankyou very much for your feedback i shall ensure the extra £1500 goes in on 6th October.

Regards

Keenwalker