Renewing ISA
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Soldato
Wow I didn't realise ISAs had dropped so much. I have an instant access online one with Virgin and it's 3.25%. They're advertising them now at 2% :\
yep, just for curiosity i had a quick search this morning
http://www.newsroom.firstdirect.com/press/release/first_direct_takes_pole_positi
I knew id had a rate of around 6% in the past.......2005 all those years ago, its gonna be a long time until we see the like of that again
Cant help but feel as said previously, people who are responsible with their money and savings get little to no reward for doing so
Sure the allowance has gone up but on todays rates you are still £30 worse off if you go by the full 2013 limit of £5,760 compared to the £3,000 in 2005 at 6.25%
http://www.newsroom.firstdirect.com/press/release/first_direct_takes_pole_positi
I knew id had a rate of around 6% in the past.......2005 all those years ago, its gonna be a long time until we see the like of that again
Cant help but feel as said previously, people who are responsible with their money and savings get little to no reward for doing so
Sure the allowance has gone up but on todays rates you are still £30 worse off if you go by the full 2013 limit of £5,760 compared to the £3,000 in 2005 at 6.25%
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![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
It constantly makes me sad that those of us who have chosen to save as much as we can for the future are rewarded with virtually zero interest whereas interest rates are kept low for those who borrowed more than they really ought to have 
Soldato
[TW]Fox;23501859 said:It constantly makes me sad that those of us who have chosen to save as much as we can for the future are rewarded with virtually zero interest whereas interest rates are kept low for those who borrowed more than they really ought to have
Although having a decent amount in savings, I think the fact the interest on my mortgage is such a small amount now and am able to over pay large chunks of it, I can excuse the poor return.
Soldato
[TW]Fox;23501859 said:It constantly makes me sad that those of us who have chosen to save as much as we can for the future are rewarded with virtually zero interest whereas interest rates are kept low for those who borrowed more than they really ought to have
Funny, I was sat chatting to a work colleague about money (standard). He told me he can't wait for his mortgage renewal to come up next year as he has a lot of savings sat doing nothing. He says he can't wait to use those savings to pay off a big portion off his mortgage and then remortgage to a much lower rate. Sad isn't it?
Sure, I know savings are meant for spending on important things just like your mortgage, but the way he said it was for the very fact you point out. He expressed he has all that money sat there and it's doing literally nothing, so it would be more useful to just spend it.
Soldato
[TW]Fox;23501859 said:It constantly makes me sad that those of us who have chosen to save as much as we can for the future are rewarded with virtually zero interest whereas interest rates are kept low for those who borrowed more than they really ought to have
Totally agree fox.
Problem is with the massive lack of financial understanding so many have, the attitude of the state will support me if it all goes **** up, and the fact so many have to have it now before they can afford to pay for it, the whole economy would go utterly **** up if rates had of been kept up.
What I use to help me justify (if you need to) the short term rate pain is that you STILL have longer term security by having your savings than if you didn't.
My opinion is that when rates do start to go up, ie we are fully out of the global recesssion and well into global growth again that rates will go up and fast. I do not believe most of the population will have changed and as soon as opportunity presents to start spending again they will, causing some heavy inflation pressure and likelyhood they will try to supress with interest rates.
Housing market is the only adverse to that view, still overvalued and with little prospect of the carefree lending the banks undertook happening again soon, I can't see the housing market prices really going up significantly outside London. So with demand supressed by prices there may not be so much need for the higher interest rates. Only time will tell.
Man of Honour
I miss the days when even a standard bank account had over 3% interest on it
I miss the days when even a standard bank account had over 3% interest on it
Hey, some still do, Santander 123 current account for example
Associate
If you dont need access to the money for a while you could consider buying company bonds or if you have a self-select ISA I think you can buy bonds in them.
You readily get 5.5% - 6.5% interest on these
You readily get 5.5% - 6.5% interest on these
Associate
sorry for hi-jack with stupid questions but..
I got a 2 year fixed cash ISA last year, when the tax year hits, I basically re-invest what is already in it, assuming there will be extra over the allowance, I have to withdraw it? Or I get to dump in the new tax years allowance on top of the 5k or so that's already in (assuming this is defo not the case!)
With S&S ISAs, people are generally pro these or too risky? I'm assuming its okay to have a cash ISA with one bank and a S&S's one with another in the same tax year? S&S are tax free too?
Sorry for basic questions, been trying to sort my money out but apparently banks hate actually opening savings accounts for me so i have 10k sitting in a checking account providing bugger all interest
I got a 2 year fixed cash ISA last year, when the tax year hits, I basically re-invest what is already in it, assuming there will be extra over the allowance, I have to withdraw it? Or I get to dump in the new tax years allowance on top of the 5k or so that's already in (assuming this is defo not the case!)
With S&S ISAs, people are generally pro these or too risky? I'm assuming its okay to have a cash ISA with one bank and a S&S's one with another in the same tax year? S&S are tax free too?
Sorry for basic questions, been trying to sort my money out but apparently banks hate actually opening savings accounts for me so i have 10k sitting in a checking account providing bugger all interest
do NOT withdraw money from your ISA unless you want to spend it. If you want to move to a better account using money you've already invested in an ISA you must find an ISA product that allows transfers in.
If you withdraw it, when you reinvest it it will use up your allowance again.
If you withdraw it, when you reinvest it it will use up your allowance again.
Man of Honour
[TW]Fox;23502275 said:Hey, some still do, Santander 123 current account for example
True. However, as you remember/know it used to be the norm to have several % as interest, and then savings accounts were well over 5-7% as a minimum! I miss the 90s!
I do need to swap banks though - but I quite like deal I have at the moment.
Associate
I was disappointed (lol) when I went to the bank the other day to find my interest rate had nudged up to 1.09% Best thing I ever did to have a tracker mortgage.
It will be paid off before the rates jump back up.
While it might feel like that to someone like you (a typical working person with money to save - not being rude
) you must remember the entire economy is based on credit. Tesco for example don't buy the products they sell, they get use their line of credit, this way if a line of products just simply doesn't sell as quickly as was hoped, they only pay off interest, rather than taking a hit on the whole cost.If big companies can't get credit at decent rates then suddenly they either start failing or they have to increase their prices (look at the HMV thread for proof of what high interest rates on loans do to a company).
To encourage lending and borrowing banks are keeping the rates lower than they would like, this means they aren't making as much on the loans so the bank can't award its creditors (you) with as much as they once could. And this is without even mentioning the investment side of banking.
While it might feel like that to someone like you (a typical working person with money to save - not being rude
The main reason large stores like Tesco buy on credit is because they can, rather than to reduce risk of non-selling lines. If you buy £100k of stock on Day 1 on 180 day terms and by Day 30 you've sold it all for £200k to customers, then you can keep hold of that £100k for a further 150 days.
Typically there is no interest due until the invoices are past due anyway, therefore its very profitable for large firms to hang onto the money as long as they can before paying.
^ oh i get that there is a bigger picture, but as you say a typical working person doesn't really factor in making the system work
They have no interest in people like me, im not going to give them money in fees and interest, i want to make the most of what i have, or make money off them.
The only way i can really do this is decide how much of my savings i want to risk and where, or for the longer term lock it away for marginally better rates
They have no interest in people like me, im not going to give them money in fees and interest, i want to make the most of what i have, or make money off them.
The only way i can really do this is decide how much of my savings i want to risk and where, or for the longer term lock it away for marginally better rates
I think this is a very good point. I bet a fair chunk of people's ISA rate are lower than their mortgage rate. Unless the cash ISA is used for short term savings, overpaying your mortgage is a good idea imo, especially if you're on a high LTV deal. You'll reap the rewards when it's time to renew your mortgage deal. I'd certainly be overpaying my mortgage if I wasn't saving for a wedding!
Associate
Now think about it seriously. What maes more sense. Pay £10,000+ of your mortgage of get married.
No Brainer. Pay it off the mortgage. If your still together in 25 when your mortgage is paid then get married.
Soldato
How do I view what is in my ISA?