Property News · March 23, 2015

Has the cash Isa become pointless?


With its 7.25% tax-free interest rate, people raved about Labour chancellor Gordon Brown’s new savings vehicle in 1999. Not any longer Boyzone, the Backstreet Boys and Westlife were topping the charts in 1999, and then chancellor Gordon Brown scored a little hit of his own. In April, he launched the cash Isa announced in his budget the previous year.Thousands eagerly took out the tax-free accounts that offered inflation-busting interest rates. Back then, the best buy from Smile came with an interest rate of 6.5% – rising to 7.25% the following year. Isas were hugely popular because, with available rates of 7.25%, anyone with savings of just £7,000 would get £500 in interest and not have to pay a penny of tax. Continue reading…

Source : theguardian.com
Read more…Has the cash Isa become pointless?

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