Heads up, savers! Financial whiz Martin Lewis has a big warning about a possible change to cash ISAs that could impact your pocket. Rumour has it that there might be a plan brewing to cut cash ISA limits to £10,000 in the upcoming autumn budget. Martin’s not thrilled with this idea, and here’s why:
The plan would keep the total ISA allowance at £20,000 but limit cash ISAs to £10,000. This push aims to steer savers towards stocks and shares ISAs, especially those investing in British companies. While investing can offer better long-run returns, Martin thinks this strategy won’t cut it.
He argues that slashing the cash ISA limit might upset older savers without boosting investment significantly. Plus, it could mess with building societies that rely on these savings for mortgage lending. Martin is all for encouraging investment but reckons the government should offer more enticing incentives instead of just chopping limits.
He’s even suggested a savvy alternative: a starter investment ISA that gives a 10% bonus on the first £2,000 invested. Sounds like a win-win to us!
So, how would these changes affect you? Are you for or against the potential new rules? Let’s hear your thoughts below! 💬💷 #MoneyMatters #Savings #Investment #MartinLewis