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Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

Last post Tue, Apr 28 2009, 1:19 PM by busom buddy boon. 21 replies.
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  •  Tue, Apr 28 2009, 1:19 PM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    He could have reduced or removed the taxation of savings interest for a period of time until rates rise to an acceptable level again
    • Post Points: 5
  •  Tue, Apr 28 2009, 8:59 AM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    If I may be so bold as to slightly amend your closing question: "Do the Ministers never look at other lifestyles or areas outside the Palace of Westminster?"
    • Post Points: 5
  •  Mon, Apr 27 2009, 11:04 PM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    I totally agree - yes the best thing for savers is indeed to increase interest rates. Another thing is for the 10% to be reintroduced on income tax for those on low income which should never have been removed in the first place. The sooner this government is out of power the better for it has caused so much damage that it will take years to put things right again. It seems to me that they are all on the fiddle feathering there own nests whilst many others are struggling to make ends meet. I am just waiting to see what comes next - it is like a comic opera. Can't wait for the next General Election because I just cannot see Labour getting in again after all the mistakes they have made.
    • Post Points: 5
  •  Mon, Apr 27 2009, 10:30 PM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    Couldnt agree more. A complete waffle as a budget. There is no point in saving pennies when £s are required. Also if pensioners require help then to assume that those that need help have more money to put in an isa that may or may not give better returns is laughable. Do the Ministers never look at other lifestyles or areas outside of the South of England.
    • Post Points: 20
  •  Mon, Apr 27 2009, 6:48 PM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    No. While interest rates are so poor what point is there in saving your money.
    • Post Points: 20
  •  Mon, Apr 27 2009, 11:26 AM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    one of the advantages of the isa is that you dont have to declare it on some forms. This helps if your income is close to some thresholds. As to cash isa we have been advised that as we are running out of time we should dump all our shares and share isas in favour of cash isa as we might not live long enough to see the market recover!! So any increase is welcome and this is what I'm now doing.

    Some peps and share isa values have nearly dropped to what they were 10 yrs ago

    • Post Points: 5
  •  Thu, Apr 23 2009, 9:15 PM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    My apologies for assuming and directing the last sentence at you directly which it wasn't meant to be. It was meant to be more for those who want something for nothing and there are plenty of them.

    We possibly both assumed in parts.

    The paragraph I think you may agree with.... and includes you personally.

    "Many of the pensioners of this country have worked hard, fought hard and what have they got for it... Not a lot."

    I was simply made redundant with a nice package - It will (should) keep me going unless I do something stupid.

    Still on the subject of mortgages, the many others on trackers are less than 50% of those who currently hold mortgages and probably those who are falling behind on their Northern Rock mortgages. I doubt I will ever repay my mortgages until I sell or transfer the properties, I also doubt I will live in a mortgage free property unless I rent it. I also doubt I will be in this country when I retire eventually even though I am England, English & Royal.

    I have come to understand that no matter how you much you put into this country it is for someone elses benefit. It is wrong and I now refuse to put in anything. I doubt very much there will be any pension pot left for me, my children or theirs.

    Whatever happens next in politics someone has a mess that is almost impossible to sort out and I do hope the blame never shifts whichever team take it on.

    • Post Points: 20
  •  Thu, Apr 23 2009, 9:08 PM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    Hi Clare,

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

    Regards

    Keenwalker

    • Post Points: 35
  •  Thu, Apr 23 2009, 8:29 PM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    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.

    • Post Points: 20
  •  Thu, Apr 23 2009, 3:42 PM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    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.

    • Post Points: 20
  •  Thu, Apr 23 2009, 1:30 PM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    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.

    • Post Points: 5
  •  Thu, Apr 23 2009, 10:59 AM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    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.
    • Post Points: 5
  •  Thu, Apr 23 2009, 10:45 AM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    The 6th October cant be right can it?. I thought the chancellor said immediately for the over 50,s.
    • Post Points: 20
  •  Thu, Apr 23 2009, 6:56 AM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    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

    • Post Points: 50
  •  Thu, Apr 23 2009, 12:06 AM

    Re: Is the Budget announcement of a £3,000 increase in the annual ISA allowance enough to help savers?

    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?
    • Post Points: 20
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