New savings rules that could make you richer!
If you feel like you have been saving for years and not really getting anywhere, then you might be happy to learn that new rules are coming into practice which could just work in your favor.
Here are some changes that will be coming into practice from April 2015 as reported on The Mirror:
The allowance increased to £15,240, and new flexibility means you can now save this total into either a cash or a stocks and shares ISA, or split it between the two. Plus, you can transfer savings between cash and stocks and shares accounts.
Low earners: People earning less than £15,500 can register for tax-free savings. You won’t pay any tax on the interest you earn on savings balances up to £5,000.
Child trust finds to Junior ISAs: The millions of families stuck with poor paying Child Trust Fund accounts can move them into a Junior ISA.
ISAs & inheritance: Spouses can inherit ISA savings pots tax-free, meaning they can add their deceased loved ones ISA savings to their own annual allowance. This applies to anyone whose spouse or civil partner has died since December 3, 2014.
And from December 2015:
Help-to-buy ISA: On December 1, first-time buyers will get a huge boost towards buying a new home. The Government will add 25% to the amount savers put into this ISA.
They will be able to open an account with £1,000 and then put away up to £200 per month up to a total of £12,000. The Government contributes up to a £3,000 when you buy a home worth up to £250,000 (£450,000 in London).
- Expert comment: Adrian Lowcock, of AXA Wealth, says: “These are nice in theory but actually too complicated. There are a lot of restrictions on how much you can save and what value property you can buy. This is an example of taking a good product and making it more complicated. Savers should be aware that they cannot take out a help-to-buy ISA if they have a cash ISA in the same tax year, but can if they have a stocks and shares ISA.”
From January 2016:
Savings protection: The Government currently protects up to £85,000 a person per provider in bank accounts through the Financial Services Compensation Scheme (FSCS) in case a firm goes bust.
From January 1, 2016 this will be reduced to £75,000, so you might need to review your finances to check if you need to move any cash.
If you have money in fixed-rate accounts that exceed £75,000, you’ll be able to withdraw up to a maximum of £10,000 without any interest penalties.
CLICK HERE to read the full article over on The Mirror.
