Isas - Worth It?

[Tummybanana]

My 10K in NS&I is 2.4%! Tax free because there's nothing to bloody well tax. I'm seriously considering hoiking the whole lot out and using it on home improvements. Should I hang in for the long term, or start making money work for me?

In fact, that seems to be the problem with this country; people want fixed term results for doing nothing more than giving their money to a bank to hold. If we want to make decent returns, cut out the middle man, do some homework and start investing in businesses. Zopa would have been great, but last I checked it was all about people 'consolidating loans' and not providing any evidence of return on investment - except a couple who wanted to go to university.

[terryturbojr]

I'm getting about 4.5% on mine, so 4.5% better than a sock under the bed.

I'd move it into one of the government owned banks rather than settling for 2.4%

[Jason]

ISAs used to be great, always good savings rates and tax free too. As a kid I always used to save there first. The problem in recent years is the rates were never that good for existing contributions, only good for new money.

Now the rates are just crap, like most savings accounts. Good job I fixed for another year when they were over 6%. Infact, all my savings accounts mature at the end of 2009 with good rates, that's when I'll probably get a house..!

[greenalien]

Cash ISAs must be viewed as a long-term investment - remember, if you pull the cash out now, you can't put it back again, and tax-free is still worth something.

Edited December 16, 2008 by greenalien

['Bart']

As a kid I always used to save there first.

For some reason that makes me feel very old.

Anyone remember TESSA?

Edited December 16, 2008 by 'Bart'

[Garry AKA Pod]

Cash ISAs must be viewed as a long-term investment - remember, if you pull the cash out now, you can't put it back again, and tax-free is still worth something.

It's worth sweet F.A if after tax you can still earn more in other savings accounts. You're also limited to just £3600 per year. If you can comfortably save double that, you might as well put the full lot elsewhere.

Good old compound interest.

[Garry AKA Pod]

ISAs used to be great, always good savings rates and tax free too. As a kid I always used to save there first. The problem in recent years is the rates were never that good for existing contributions, only good for new money.

Now the rates are just crap, like most savings accounts. Good job I fixed for another year when they were over 6%. Infact, all my savings accounts mature at the end of 2009 with good rates, that's when I'll probably get a house..!

You still going through puberty then?

[Wayo]

ISAs used to be great, always good savings rates and tax free too. As a kid I always used to save there first. The problem in recent years is the rates were never that good for existing contributions, only good for new money.

Now the rates are just crap, like most savings accounts. Good job I fixed for another year when they were over 6%. Infact, all my savings accounts mature at the end of 2009 with good rates, that's when I'll probably get a house..!

Unfortunately the banks exploit their complexity. For example the A&L 4.5% deal (inc bonus) doesn't allow transfers from other A&L ISAs!

It is very slow and awkward moving between them, so they are great to suck in and then sink the rate.

[CharlieChuck]

I do! You should be able to tranfer your old TESSA in to your Cash ISA. I did.

I've got one still too. You can also now transfer TESSA's into stocks and shares ISAS.

[guitarman001]

I've got some savings in my lloyds current account; was going to switch them over to the ISA but the rate is shockingly low. Don't see many good offers around. What a bugger

[dirge]

It's worth sweet F.A if after tax you can still earn more in other savings accounts. You're also limited to just £3600 per year. If you can comfortably save double that, you might as well put the full lot elsewhere.

Good old compound interest.

where do you recommend?

[Kurt Barlow]

For some reason that makes me feel very old.

Anyone remember TESSA?

Yup - stuck all my student loan money in one and bought my first half decent car (a Ford Fiesta Diesel!) with the proceeds on graduation.

[Kurt Barlow]

My 10K in NS&I is 2.4%! Tax free because there's nothing to bloody well tax. I'm seriously considering hoiking the whole lot out and using it on home improvements. Should I hang in for the long term, or start making money work for me?

In fact, that seems to be the problem with this country; people want fixed term results for doing nothing more than giving their money to a bank to hold. If we want to make decent returns, cut out the middle man, do some homework and start investing in businesses. Zopa would have been great, but last I checked it was all about people 'consolidating loans' and not providing any evidence of return on investment - except a couple who wanted to go to university.

When you said sock under the bed - I thought perhaps this was for some other reason - like having a small towel or flannel

[OzzMosiz]

My ISA comes to an end in 2 weeks. Haven't got a clue what to do with it!!!! Was at 6.4% fixed for a year. How I wished I'd fixed it for 2!

[stumpy]

My 10K in NS&I is 2.4%! Tax free because there's nothing to bloody well tax. I'm seriously considering hoiking the whole lot out and using it on home improvements. Should I hang in for the long term, or start making money work for me?

In fact, that seems to be the problem with this country; people want fixed term results for doing nothing more than giving their money to a bank to hold. If we want to make decent returns, cut out the middle man, do some homework and start investing in businesses. Zopa would have been great, but last I checked it was all about people 'consolidating loans' and not providing any evidence of return on investment - except a couple who wanted to go to university.

They dont hold your money, they spend it and lend it!.

Better if you can stick 25k in. Then its better than nationwides e-saver. Mind you it will all go t-ts up after the bank meet. Gonna kill my giant turtle and stuff the shell with £50 notes and hang it on the wall.

http://www.nationwide.co.uk/savings/all_ac...ll_accounts.htm

Look at these rates lol. E-saver plus my eye.

[Garry AKA Pod]

where do you recommend?

Nowhere now. Most of the high savings accounts were withdrawn about 2 months ago. I plumped for the HBOS one that pays about 6.25 before tax for one calendar year. Even after tax it still works out about 2.5% more than my ISA was paying. I am also saving 3 X the amount I could in an ISA and transferring all my other savings into it.

Just need Cameron to keep his promise when he gets in power and removes the 20% tax rate on savings. I won't be holding my breath though. Not that I want that toad in power!

Edited January 5, 2009 by Jimothy

[subspace]

Nowhere now. Most of the high savings accounts were withdrawn about 2 months ago. I plumped for the HBOS one that pays about 6.25 before tax for one calendar year. Even after tax it still works out about 2.5% more than my ISA was paying. I am also saving 3 X the amount I could in an ISA and transferring all my other savings into it.

Just need Cameron to keep his promise when he gets in power and removes the 20% tax rate on savings. I won't be holding my breath though. Not that I want that toad in power!

Assuming Cameron gets in power (quite a big assumption), I can't see the abolition of tax on savings interest as being a permanent change. I expect he's only proposing the idea because interest rates are low at the moment which means that it's no big loss for the government to scrap the tax.

Edited January 7, 2009 by subspace