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papag

The Goverment

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Is the Government trying to do away with ISAs via the back door ,with billions of pounds invested in the various institutions their urgently needed tax return is nil, this could be the reason why virtually all the BS /Banks are offering ISA rates well below the other saving rates which are as high as 5.45 % on a 5 yr fixed term, cant find any cash ISA anywhere near this.

If all the money was taken our of ISA products the Gov would see a massive tax take increase.or is it that the greedy banks are the ones who are gaining on the tax free status

Edited by papag

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5yr fixed is term money you'd pay more for that than for cash that can be withdrawn any time, wouldn't you??

Agree but where are the 5 4 3 2 or 1year fixed rate Isas on similar Interest rates to the bonds, checking all the best buy tables and investment sites the rates are miles apart.

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Is the Government trying to do away with ISAs via the back door ,with billions of pounds invested in the various institutions their urgently needed tax return is nil, this could be the reason why virtually all the BS /Banks are offering ISA rates well below the other saving rates which are as high as 5.45 % on a 5 yr fixed term, cant find any cash ISA anywhere near this.

If all the money was taken our of ISA products the Gov would see a massive tax take increase.or is it that the greedy banks are the ones who are gaining on the tax free status

The banks are attempting to attract retail money - hence offering new products at fixed rates. People tend to invest in ISAs regardless - although rates are now creeping-up.

That you put this disparity down to government intervention is a symptom of paranoia - try getting out a little more - perhaps buy a dog and walk it in the park this will bring you more into contact with other people.

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I suspect most people are on low interest rates so it wouldn't raise much cash if tax was paid on it. Not anywhere near the amount this government needs anyway.

Plus they are raising the ISA allowance by quite a bit next year.

Edited by subspace

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Is the Government trying to do away with ISAs via the back door ,with billions of pounds invested in the various institutions their urgently needed tax return is nil, this could be the reason why virtually all the BS /Banks are offering ISA rates well below the other saving rates which are as high as 5.45 % on a 5 yr fixed term, cant find any cash ISA anywhere near this.

It does make you wonder why cash Isa rates seem to be getting lower and lower, compared to other cash savings.

My current isa is paying only 0.5%, so I am looking to transfer.

NS and I tell me they have stopped "transfers in" for isa's this year.

And when I asked at Barclays, they said they only paid 0.1% interest for isa "transfers in."

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With such low rates it is better to get a higher rate and pay the tax as you will be better off. Had the same with bond that recently matured - significantly higher rate of return even after paying the tax. ISA's seem to be yet another way the banks do not pay savers.

The beauty of ISAs is that they allow you to build significant savings that are tax free by using your allowance every year. Despite not paying tax for the last few years I have always used my full (cash) ISA allowance (at the end of the financial year) in order to benefit when I do return to being taxed. With current low ISA rates it is tempting to transfer to normal savings, but to date have not done so as this tax free benefit would be permanently destroyed.

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Guest absolutezero
The beauty of ISAs is that they allow you to build significant savings that are tax free by using your allowance every year. Despite not paying tax for the last few years I have always used my full (cash) ISA allowance (at the end of the financial year) in order to benefit when I do return to being taxed. With current low ISA rates it is tempting to transfer to normal savings, but to date have not done so as this tax free benefit would be permanently destroyed.

+1

And you never know when ISAs will pay better than standard savings accounts in the future.

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The beauty of ISAs is that they allow you to build significant savings that are tax free by using your allowance every year. Despite not paying tax for the last few years I have always used my full (cash) ISA allowance (at the end of the financial year) in order to benefit when I do return to being taxed. With current low ISA rates it is tempting to transfer to normal savings, but to date have not done so as this tax free benefit would be permanently destroyed.

+1

Assuming a working life of 45 years surrendering a tax-fee investment for a couple of percentage points interest now seems a remarkably short-sighted approach to savings and investments. Yet there are people in the financial pages of the press touting just such nonsense - only a half-wit would follow their advice.

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+1

Assuming a working life of 45 years surrendering a tax-fee investment for a couple of percentage points interest now seems a remarkably short-sighted approach to savings and investments. Yet there are people in the financial pages of the press touting just such nonsense - only a half-wit would follow their advice.

Government are happy for you to put money in an ISA. They know where it is. It means you havent put it offshore or used it to buy a foreign car or holiday and when you kick the bucket they get 40% of it anyway if you have a house or other savings. You can't shelter an ISA with inheritance tax planning.

And anyway, you have already paid tax on the money you put in. Government isn't giving you anything by not taxing the nominal increase in value which barely keeps up with inflation.

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And anyway, you have already paid tax on the money you put in. Government isn't giving you anything by not taxing the nominal increase in value which barely keeps up with inflation.

Correct - they are merely taking less away. That is still better than taxing it twice.

Certainly there are other tax free investments, but for cash ISAs are solid and should be treated with a long term view to maximise their benefit.

If the situation in five years is still the same then I will lose out on interest. However, should things return to greater parity between ISAs and general savings accounts then I benefit by far more. I've no idea which way it will go so I'm betting on the size of the swings. I can always move money out of ISAs, I can never return it.

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It does make you wonder why cash Isa rates seem to be getting lower and lower, compared to other cash savings.

My current isa is paying only 0.5%, so I am looking to transfer.

NS and I tell me they have stopped "transfers in" for isa's this year.

And when I asked at Barclays, they said they only paid 0.1% interest for isa "transfers in."

Yorkshire BS allow transfers in and pay

10+ 1.90%

10,000 - 19,999 2.10%

20,000+ 2.25%

Those rates aren't bad when you consider it's tax free and in the future who knows how much they might tax savings outside ISAs, so it could be worth keeping them going.

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Guest absolutezero

Yorkshire BS allow transfers in and pay

10+ 1.90%

10,000 - 19,999 2.10%

20,000+ 2.25%

Those rates aren't bad when you consider it's tax free and in the future who knows how much they might tax savings outside ISAs, so it could be worth keeping them going.

And there's the reason to keep your ISAs.

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And there's the reason to keep your ISAs.

on the other hand the tax relief may be taken away by a change of gov policy.

Personlly I'd rather give the tax to gov to waste than bankers to squander on themselves

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