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Originally Posted by SMHarman
And tax free is a good encouragement to do something. Docklands and many other parts of the country were regenerated with Enterprise zone tax breaks.
It also makes a big difference to the end result. For a taxpayer, a 5% gross rate means a 4% tax rate net, for a basic rate taxpayer and 3% net rate for a 40%
So an Isa paying 3.5% is a better investment for anyone, than a standard account paying 5%. An Isa is a pretty flexible savings account, immediate withdrawal, CAT standard 0 charges, the ability to transfer between savings providers.
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i am not disputing anything that you have said here. however i do think the gov are being sneaky by reducing the limit on the ISA........as far as i remember it was announced at the beginning of this financial year, but those in the financial sector had been expecting it some time. maybe the gov don't see it as capping the amount we can save, since the interest rates on instant and remote access accounts is higher than it has been for a while, so it will still encourage people to save