Does anyone know why ISA rates are always lower than equivalent taxable savings rates (before tax)?.
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410manzanilla postedBecause banks know they will still get takers at the lower rates because of the tax advantages...
Posted on 20 October 2009 |
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804MikeGG1 posted
There are one or two institutions which don't have ISA products, as such. Instead, they will put an ordinary savings product into an ISA wrapper. Those are the contracts to find!
Otherwise, a basic rate taxpayer will gain very little from a Cash ISA.
Higher rate payers do gain from ISAs, but they are being conned out of just as much as basic rate payers.
Mike
Posted on 20 October 2009 | Love 0 loves
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7compound200 posted
so when do smaller savers use a cash isa?do you use high interest savings accounts--wait till you reach max allowance £5100 for year then invest in isa.
as a basic rate player
a well known finance expert --ML--on another site states always use isa first
IM REALY CONFUSED
Posted on 18 November 2009 | Love 0 loves
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0nibbers posted
If you don't pay tax an ISA is pointless.
If you do or will do in the future then do the sums i.e. 5% in a standard tax deductable a/c yields 4% and 3% for basic and higher rate tax payers respectively. The good thing is that over many years you can build up a cash sum which under present legislation is always shielded from the tax man.
In my opinion (with respective rates as they are) it is just about worth a standard tax payer investing in a Cash ISA
Posted on 18 November 2009 | Love 0 loves
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