Cash ISA rates

Discussion in 'Insurance & Finance' started by Palfrem, Mar 26, 2014.

  1. Palfrem

    Palfrem Hardcore MB Enthusiast

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    Is it worth bothering with these anymore?

    Just been checking the rates and they are utterly hopeless.
     
  2. markjay

    markjay MB Club Veteran

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    If you get 2% on an £8k cash ISA, that's £160 pa in interest (not exactly, but for agument's sake...). So if you are in the top tax bracket then that's a saving of £72 in tax - or less if you are in a lower tax bracket. So in short we are talking about a free tank of fuel every year?
     
  3. Scott_F

    Scott_F Hardcore MB Enthusiast

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    The large increase in the ISA limit that will arrive in July will make them a more attractive investment.

    And rates will not always be so wretched so if you view them as a longer term investment (which you should) then buy now and reap the benefit in years to come.
     
  4. Chrishazle

    Chrishazle Hardcore MB Enthusiast

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    Why have a cash ISA at 2% when any number of quality stocks and shares will pay 4-5% dividend - plus by choosing carefully you stand a decent long term chance of capital gain. At 2% all you're really doing is standing still, as inflation takes away most or all of the gain!
     
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  5. baxlin

    baxlin Hardcore MB Enthusiast

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    One good thing from the Budget, the facility to switch from Stocks and Shares ISA to Cash ISA. At the moment it can only be done the other way.

    So, why not put the full amount into S/S ISA, then move to Cash when the rates go up, or to consolidate profit in the future.

    Just an idea.
     
  6. adzy

    adzy Member

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    agree with this, that's what i've been doing the last few years, both with high divi yield stocks with 4-5% yields and also credit in the fixed income space. In 2011 i got barclays bonds at 13% yield with 3 yr maturity ! They didn't go bust so i got the yield plus some decent cap growth.

    My isa come april will be going towards latin american stocks, they have been beaten up badly, especially relative to the US and developed market equities and look very attractive as a starting point for investment now.
     
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