Call for ISA allowance to be increased

iStock_000003037994_ExtraSmallThe British Bankers Association (BBA) has called for George Osborne to help savers by changing how the annual Individual Savings Accounts (ISA) allowance works. Investors can put up to £11,520 into an ISA in the 2013/14 tax year. However, only £5,760 can be held in a Cash ISA, leading to claims that savers, who prefer to hold cash, are losing out to investors, who are prepared to take greater risks with their investments. In its’ submission to the Treasury ahead of next month’s Autumn Statement, ...

Savings: Rescue your savings from falling interest rates

Since the start of the financial crisis in 2008, savers have had to content with all-time low interest rates and periods of relatively high inflation, but just when savers thought things couldn’t get any worse they have been hit by a double blow. Firstly interest rates on savings accounts have started to fall again as banks and building societies reduce their best savings interest rates after the introduction of the government’s Funding for Lending Scheme (FLS). Secondly, inflation has again shown signs of starting to rise more rapidly, with many experts predicting a return to relatively high levels of inflation in ...

7 tips to stop inflation attacking your finances

The latest inflation figures saw a sharp rise in the rate at which prices are rising. Inflation is hugely dangerous to our income and savings, even relatively low levels can be hugely destructive, eating away at capital and reducing the buying power of our wages or pensions. The Bank of England has the job of trying to keep inflation under control, although for some years now they have struggled to keep it at the 2% target set by the government. Indeed many economists believe a combination of rising food and energy prices, along with the effects of Quantitative Easing, could mean inflation ...

Savings: Millions overpay tax on their savings accounts

New research from the pressure group, Save Our Savers, has revealed that up to three million people are over paying tax on their savings accounts. A Freedom of Information request by Save Our Savers to HMRC, has shown that during the 2009/10 tax year 3.5 million people were eligible to have paid tax on their savings at a rate of 10% rather than 20%, however, only 500,000 applied for the tax refund they were due via the self assessment system. The scale of the problem is hard to quantify, however a parliamentary report in 2010 estimated that 2.4 million pensioners overpaid ...