The more i watch your content the more i appreciate your hard work. You are catering to the masses of finance not the get rich quick channels you see all over the place these days. My opinion of cash ISAs is with current interest rates they are a very bad idea. Better to make use of chase for savings and a stocks and shares isa for long term investments.
Hi Andy With regards to the tax free allowance of 1000 for savings. There is a further benefit for those on low incomes with substantial savings. If for instance your taxable income was 12570 you obviously get the 1000 but in addition you get an additional allowance of up to 5000 above the 12570. If your earnings are say 15750 the additional allowance would be 2000. Colin Synnock
Thanks Andy. Have been trying to work out the figures on my savings for the upcoming year so the graph you have produced helps with towards that. Multiple pots can be taxing lol
Hi Andy, would you risk putting more than £85k in a Chase savings account? I’ve just sold my house and am planning on buying next year but currently renting. I’ve maxed the Chase savings limit on the basis that banks these days have to go through stress testing and it is highly unlikely Chase (part of JP Morgan) would become insolvent. Would you do the same in my position?
I do actually have the NatWest Digital Regular Saver saving £50 a month towards the £1,000 - I opened it a little late! I tend not to have a cash ISA anymore, I find a Stocks and Shares ISA more worth it 😄
Interesting video Andy and with the PSA cash isa's for most are now redundant. The amount you need now to pay tax is extremely high most people will never need to worry about tax
Savings rates are derisory because banks don't need your money when the government can print it. Inflation is heading north at 8% or higher. That is an 8% stealth tax on savings. It looks like some nerve to charge anyone any tax on interest below inflation. We tax alcohol to discourage drinking, fuel to discourage pollution, cigarettes to discourage smoking, and savings to discourage ..saving.
I don’t agree that a cash isa is not worth it at the moment. There are people like me who trust the big-name long established banks and building societies and don’t want to deal with the snazzy financial companies we’ve never heard of. Chase? Who are they? Can they be trusted? So I look at the savings rates at the trusted banks and see the rates are useless eg. 0.01 to 0.2 percent. Therefore I look to isas and can see rates of 0.5 to 1.5 %. That’s good isn’t it? I’ll take it! I don’t to be a comparison slave and keep opening and changing bank accounts. You have to be a nerd to do it. And yes I do know about the FCA scheme. I’d be interested to receive considered replies. Thank you
Hi Andy, a quick one! Does your credit score get penalised if you move your savings from your ‘all life’ bank to another one with a better interest like Chase? I have 0,4% in Barclays blue rewards savings account at the moment, thinking about moving all the money to chase for the 1,5%…
Moving savings accounts won’t impact your credit report at all, unless you go for an account linked to a current account. But Chase performs a soft credit check so that won’t make a difference!
Hi Andy quick question - I have an emergency fund in my cash ISA in my high street bank account - what are your thoughts of putting this and holding it in premium bonds? Obviously no interest but the chance to win cash prizes? Cheers!
Two main thoughts. It can take a few days to get the cash (hopefully not an issue but worth bearing in mind), and now you can get more than 1% elsewhere it’s less attractive (unlikely to win big). More here ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Qm_w7ogBBV4.html
surely your assumption that ISA is better , doesn't stand up if ISA rates are less than half bond rates ~ 50k @3.91% bond = 1950 ( 1564 after tax ), whereas Yorkshire BS ISA 50k @ 1.8% = 900
There is a reason for getting a cash ISA you didn't cover: you can transfer from a cash ISA to S&S or IF ISA without using your ISA allowance. So if you don't feel comfortable investing in those ISAs yet but might want to in the future, you can bank £20000 in a cash ISA wrapper this year to invest sometime later on.
