less tax for pensioners

  Teaboy 17:31 04 Feb 09
Locked

I read, in that fine newspaper, the daily mail, that the chancellor is considering taking less tax from the savings held by pensioners in order to give them a higher income.

This shows a lack of comprehension on his part in how the banks treat their savers. He clearly has no savings, his income being such, and his pension prospects massive he doesn't need them.

Any tax reduction offered will simply be swallowed up by the banks to swell their profits.

See what the banks have done with ISA's? which is my point. Tax free they may be, for the banks.

  newman35 17:38 04 Feb 09

Always hard to understand why Instant access ISAs always pay less interest than ordinary Instant access savings - the 'tax advantage' disappears straight away.
Same money in there, isn't it?

  spuds 18:13 04 Feb 09

What's the betting that there is a catch 22 in there somewhere :O((

  Grey Goo 20:11 04 Feb 09

If you are 65 or over and have a total income below £22900 then you can have an income of £9490 before you start to pay tax. I don't know the number of pensioners earning up to £9490 and not paying tax, these measures will not make any difference to them. I expect any moves will involve the dreaded tax credit shambles.

  Grey Goo 20:13 04 Feb 09

You need an internet based e-ISA.

  newman35 21:16 04 Feb 09

Got a variety already, but all seem to pay less for ISA saving.

  citadel 21:20 04 Feb 09

very nice of them after raiding pension funds.

  Teaboy 18:20 05 Feb 09

Grey Goo

I have a internet ISA paying less interest than an ordinary tax paying savings account which I also have, and after today's drop in interest rate, my ISA rate will shrink further.

It seems that as most savers favour ISAs, the banks are hoping they will remain, (because of the 'ha-ha' tax free element) therefor they are favouring taxed based savings accounts against ISAs usuing the tax free element as interest payment.

That what I think.

  bri-an 18:40 05 Feb 09

I feel the same, it's much harder to transfer money in ISAs as well, so banks do feel they 'have you' more than with ordinary accounts.
Time to shift the lot to ordinary I think.

  Toneman 18:43 05 Feb 09

Time to shift the lot under the mattress I think...

  Grey Goo 23:59 05 Feb 09

The Principality still gives 2.7% at the moment on their e-Isa and you can transfer existing isas into it. Will go down some after today but so will the rest.

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