![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Why wouldn't they? The two are not necessarily linked - the inflation figures are calculated from a weighted average of a basket of items. It doesn't mean that everything you can buy has increased by whatever the inflation rate is. Some things will have increased by much more than inflation. Others will have fallen in price.
ISA's - Tell why am I doing it?
- Thread starter opethdisciple
- Start date
Why wouldn't they? The two are not necessarily linked - the inflation figures are calculated from a weighted average of a basket of items. It doesn't mean that everything you can buy has increased by whatever the inflation rate is. Some things will have increased by much more than inflation. Others will have fallen in price.
[TW]Fox;27827062 said:
Yes but house prices could be declining in the 0% scenario. Neither scenario is better if you allow that level of uncertainty.
Like for like they are the same. On average inflation will be correlated with house price inflation.
We are in the 0% scenario - inflation is currently 0%.
Are house prices declining in this country?
Your point is that low interest in a low inflation environment is broadly the same as higher interest in a higher inflation environment.
If thats not what you meant, then no, I didn't understand your original point.
If that is what you meant, than I maintain my view that it's not relevant as it depends entirely on your savings goal and the specific level of inflation of whatever it is you'd likely buy with the money, which may or may not be even remotely similar to the official rate of inflation.
If thats not what you meant, then no, I didn't understand your original point.
If that is what you meant, than I maintain my view that it's not relevant as it depends entirely on your savings goal and the specific level of inflation of whatever it is you'd likely buy with the money, which may or may not be even remotely similar to the official rate of inflation.
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I guess the question I have is should I bother depositing more cash in to my ISA before the April the 5th deadline?
Saving in general has become much less rewarding in recent years. The BOE doesn't want you to save, hence why interest rates are so low, and why you have made this thread 'ISA - whats the point'.
Who know's when interest rates will get back to 'normal' levels, but my guess is years and years.
In the meantime you have two option, suck it up and accept saving cash from an investment POV is pointless as rates are so low and inflation will prob jump back up again soon meaning even less real return.
Next option is what all investors are having to do, realize that in these times if you want decent returns on your investments, you are going to have to take more risk!
The last few years has been a great rally for the stock market, especially Stateside. Some people believe this rally is soon to end, but they lack a crystal ball, and there have been folk saying the bull run is going to end for years, it keeps going.
+1 for the S&S ISA, shelters you from capital gain, and tax on dividends.
Who know's when interest rates will get back to 'normal' levels, but my guess is years and years.
In the meantime you have two option, suck it up and accept saving cash from an investment POV is pointless as rates are so low and inflation will prob jump back up again soon meaning even less real return.
Next option is what all investors are having to do, realize that in these times if you want decent returns on your investments, you are going to have to take more risk!
The last few years has been a great rally for the stock market, especially Stateside. Some people believe this rally is soon to end, but they lack a crystal ball, and there have been folk saying the bull run is going to end for years, it keeps going.
+1 for the S&S ISA, shelters you from capital gain, and tax on dividends.
Man of Honour
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Are you likely to be in a position to max out your ISA allowance next year? If not then the difference in interest received is likely to be minimal whether you choose to put it in this year or next financial year. Also worth considering how soon you are likely to need that money although easy access ISAs can mitigate that, usually at the expense of the rates available being (even) poorer.
Deleted member 66701
Deleted member 66701
[TW]Fox;27827069 said:
They are yes - http://www.theguardian.com/business/2015/jan/07/house-prices-fall-uk-2015-london-drops-cebr
Even Zoopla shows a a decrease:-
http://www.zoopla.co.uk/property/21-meadows-avenue/thornton-cleveleys/fy5-2tn/8941515
Associate
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Just gamble it. Any profits tax free....
The first link was just a forecast made two months ago. Here's what's actually happening with house prices so far this year http://www.thisismoney.co.uk/money/...ouse-prices-What-expect-news-predictions.html
The second link is for a specific postcode. Even when house prices are booming some areas don't do well so it doesn't really show anything.
Deleted member 66701
Deleted member 66701
It also shows average UK house prices.
Even on the link you provided, it shows UK average house prices are falling.
http://i.dailymail.co.uk/i/pix/2015/03/02/263B995300000578-2975356-image-a-2_1425285648387.jpg
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Soldato
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I guess ISAs are good if you want an easy life when it comes to filling in a tax return? You don't have to include ISAs in the section that asks you to list off all the interest on your bank accounts that you have made and thus pay tax on that?
Or am I talking guff?
Or am I talking guff?
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I am in a position where I can put in the max allowable amount (15k) before April the 5th.
The only reason why I have this money is I moved back in with my parents over the last two years to save cash so I can afford to buy my own property.
I don’t see my self moving out just yet, but maybe in a years time.
Why I mention this, is the other option is to put a bigger sum of money in to a bond.
But then I could put my 15k in to my ISA and the rest in to a bond.
Stocks and Shares ISAs are brilliant, of course this has risk attached to it but if you invest in one of all world index tracker funds this is minimised. I'm personally up around 12 percent at the moment (since around 6 months ago), but I was lucky with an american tracker fund and it's definitely a bull market.
Associate
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How about a santander 123 account? will give you 2.4% net unless you are a higher rate tax payer
*Dependent on tax band. If the OP is a basic rate taxpayer, I'd use a cash stocks and shares account.
Soldato
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I use mine to purely hide away my money and stop me from using it. Allowing me to save £10 maybe £12 a year 