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Re: Best Instant Access Rates

Posted: Wed Jan 11, 2017 9:03 am
by planteria
good that you are sure it is all worthwhile Bruce..
and i don't know much about that Luke :think:

Re: Best Instant Access Rates

Posted: Sat Jan 14, 2017 2:07 am
by Luke_PieStalker
planteria wrote:good that you are sure it is all worthwhile Bruce..
and i don't know much about that Luke :think:
http://www.moneysavingexpert.com/savings/lifetime-ISAs

Re: Best Instant Access Rates

Posted: Sat Jan 14, 2017 2:22 am
by Sarah
Luke_PieStalker wrote:Dont forget the "Lifetime ISA" is not too far away (April)
Or do forget the "Lifetime ISA" if you're over 40; because you won't be eligible! :shh:

Re: Best Instant Access Rates

Posted: Sat Jan 14, 2017 8:40 am
by kevinchess1
Glad I'm not over 40 then' :D

Re: Best Instant Access Rates

Posted: Sat Jan 14, 2017 9:07 am
by planteria
ahh.. i am a youthful early 40s, so i miss out. i thought there was a reason i was taking no interest :mrgreen:

Re: Best Instant Access Rates

Posted: Sat Jan 14, 2017 1:26 pm
by macliam
I take the fifth - it's not for me.....

However, it seems a shame that the government choose to artificially boost savings for some whilst interest rates mean others are being robbed by inflation.

Re: Best Instant Access Rates

Posted: Sat Jan 14, 2017 5:04 pm
by planteria
i agree that it is an unusual approach.

Re: Best Instant Access Rates

Posted: Sun Jan 15, 2017 11:10 am
by parchedpeas
It's not really.

The Lifetime ISA is the 27year death knell for the State Pension. If you think any 40-year old will be better off at 67 than a 67 year old is now, then you're clueless.

Re: Best Instant Access Rates

Posted: Sun Jan 15, 2017 1:37 pm
by Bruce
I see the Lifetime ISA as being a product to appeal to those who want a pension, but don't want a pension. What I mean by this is those who want to save for retirement, but do not want their money invested in the stock market, bonds, property or whatever.

The 25% bonus is equivalent to the tax relief for a basic rate taxpayer paying into a pension. Higher rate and additional rate taxpayers won't receive the extra tax relief they would for a pension.

I find the first time house part of the Lifetime ISA slightly odd. I'd rather the Lifetime ISA be kept for retirement and the Help to Buy ISA kept for house buying, but with the rules changes on the HTB ISA to harmonise it with the Lifetime ISA. There's quite a few key differences at the moment:
Lifetime ISA: £450,000 maximum property purchase, £4,000 maxmum deposit per year
HTB ISA: £250,000 maximum outside London, £450,000 inside London, £2,400 maximum deposit per year (£200 per month)
In April, it will be possible to transfer a HTB ISA to a Lifetime ISA, but the rules around when a bonus can be earned are complex and timings will have to be carefully considered, otherwise access to the HTB ISA bonus could be lost for a year.

With nearly all properties round here being over £250,000, even one bed properties, the HTB ISA is essentially useless for me. I'm waiting until April 2018 (assuming I've not bought by then), to transfer my HTB ISA into a Lifetime ISA which I would have opened in April 2017 (confusing, eh?)

Re: Best Instant Access Rates

Posted: Mon Jan 16, 2017 6:13 am
by Luke_PieStalker
kevinchess1 wrote:Glad I'm not over 40 then' :D
They are talking about age, not your IQ Kev. :thumbup: