JEFF PRESTRIDGE: This is why savers should be very, very angry at Reeves’ mad, bad plan to slash the annual cash Isa allowance
Within nine days and after months of speculation, we must find the damage that the government wants to apply to our tax -friend Jesus.
I warn you, it won’t be nice. For those who prefer cash for shares, it will take a risk to take risks, labor will take you on something rotten. Prepare to be angry. Very angry.
As a part of the mansion speech in London, chancellor Rachel Reeves for a week on Tuesday, will confirm that the protectors from next April can no longer go up to £ 20,000 in a reliable year. Cash Isa.
In the future, savings will be considered as a second class Jesus Citizens with first -class citizenship for those who want to invest.
Although investors can still access £ 20,000 annually, cash protectors will be able to attract much less – maybe less than £ 4,000.
This seismic change in Isas will be sold to the nation because of economic goodness.
The field will go as follows: the more money (preferably UK shares), the better the stock market, the more good performance of the businesses, investors and wider economy will benefit.
Some people in the city have swallowed this explanation hook, line and platinum, but in the minority. Most professionals who choose this revision of ISAs are not affected alone.
As part of the mansion speech in London for a week on Tuesday, Chancellor Rachel Reeves will confirm that designed designs from next April can no longer put £ 20,000 a year to a reliable cash ISA
Last week I chatted with Charlotte Ransom, General Manager of Asset Manager Netwealth. He spoke for many people in the city when he said ‘should not be treated as a second -class asset’.
‘Cash serves important roles. Protects liquidity, provides a buffer against stock market volatility and supports shorter financial objectives. For some, cash will be the most suitable option for the whole or part of the Jesus appropriation. They should not be denied. ‘
He died right. Cash ISA protectors should not be sacrificed in the altar of the entire investment agenda.
Two last thought. First, if the government is indeed ‘investment -oriented’ ISA re -brand, it will definitely have to look at whether the existing rules are suitable for the purpose.
If they remain as they are, there will be nothing to stop using it to take stocks and share ISA and to protect the money rather than £ 20,000 rather than investments. ISA providers such as Aj Bell and Hargreaves Lansdown pay half good interest for such cash balances.
Similarly, there would be nothing to stop someone from transferring money from existing stocks and stocks.
Secondly, my opinion on this crazy, bad Jesus revision is not guided by a desire to ensure that only a government invests all of us in England PLC.
It is part of a major plan to reduce the cost of ISA (more than 4 billion £ more per year) by removing savings from cash ISAs and forcing them to the savings accounts that are responsible for the interest earned. income tax.
TSB Santander’s slippery hands
Mike Regnier, General Manager of Santander
From the point of view, many boxes to buy TSB by Santander.
It will significantly increase Santander’s UK operations and make it a third largest bank of the country with 28 million customers (based on the personal account cash balance). Lloyds, which only had TSB and Natwest only once, will be greater.
In addition, the combined organization will allow the rear office costs (to make personnel unnecessary) and reduce the repetitive branches, saving approximately £ 400 million per year and create more fat profits for Santander.
However, in terms of the customer, positives are less open.
Theoretically, any administrative savings should partially flow to more Keener financial opportunities for customers: mortgage ratesHigher savings rates. Nevertheless, this is far from being guaranteed – when banks came together, it has not always happened in the past.
A larger street network – Santander currently has 349 branches, while it has TSB 175, while customers have access to a wider local branch selection. However, this happens only if the products of the two banks reach a common CT system and allow customers to choose and select which branch they use.
Since TSB knows very well, such migrations do not always go to swim. Seven years ago, customers’ accounts were subjected to Calamitous CT melting while migrating to the new owner of Lloyds.
In addition, we don’t know if the TSB brand will remain in Hight Street or will be lost. Santander UK’s boss Mike Regnier said the agreement would increase the competition in the banking industry ‘financially’. How did this result? When you remove a business opponent, you do not need to be an economist to understand that it reduces competition rather than developing competition.
I asked the bank to measure the number of overlapping branches of two brands. Santander said, not because it can be misleading, not a number we shared right now, ”Santander said.
Late Grand Welsh Rugby International Barry John will be proud of a side step.
But my moles tell me that there are 100 places where Santander and TSB branches are near the neighbors. Next year, this time, the bride, 524 branches were weakened in the south of 400 I would not be surprised. Customer friend?
