|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    25th of February 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Investment News feed Investment News

All Financial News feed All Financial News




New ISA limits ‘all sizzle and no sausage’

Bookmark and Share

by David Masters
”New

Government plans to help elderly savers by increasing the limit on tax-free savings will have little effect, a financial expert has warned.

Kevin Mountford, savings expert at Moneysupermarket.com, said the increased limit on cash ISAs – from £3,600 to £5,100 – is worth a paltry £1.89 in tax savings on interest payments.

The £1,500 increase – which applies to savers over-50 from October – is worth so little because interest rates on savings accounts are at an historic low.

Even if savers manage to find a higher interest ISA account for their extra £1,500, they will only boost their income by £5.25 in six months.

“It’s all sizzle and no sausage,” Mountford said.

“The change does very little to help savers.”

He added that Alistair Darling’s budget “will only scratch the surface of a deep rooted problem”.

Research by Moneysupermarket.com found that 61% of savers think raising the limit on ISA savings was only a step in the right direction, and that more needs to be done.

Discuss this in the Finance Markets forums

Story link: New ISA limits ‘all sizzle and no sausage’



News posted: April 29, 2009

Financial Services:





Related financial stories to: New ISA limits ‘all sizzle and no sausage’:
Previous: «
Next: »

Visited 3169 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , , , ,