ISA interest rates slashed across the board
In a disappointing scenario it has been revealed that many of the U.K.'s leading ISA providers have slashed the interest rate available on cash deposits after apparently reaching their target business figures. When you consider that such companies as Barclays bank have reduced the rate on their basic cash ISA to just 0.1% for deposits up to £18,000 there is little incentive for new customers to use this particular investment vehicle.
However, this does mask the long-term benefits of ISA investments which effectively allow investors to place money into a vehicle which will protect their funds from capital gains tax in the future. Over the years, even taking out just the minimum ISA application, these particular investment fund pools can grow in size and offer an interesting option for long-term tax free investment. Whether UK ISA providers have taken advantage of the long-term benefits of ISAs by reducing their short-term interest rates is open to debate.
There has been a significant increase in ISA accounts over recent years as more and more UK investors look to the future and look to protect as much of their investment as possible from the taxman. With literally billions upon billions of pounds currently held on deposit in the ISA sector we could see a significant wave of new stock market money as and when the UK economy and the UK stock start to power ahead.
Share this..
Related stories
Non-executive directors start to feel the heat
While in the olden days many people believed that the non-executive roles across many of the U.K.'s leading companies were "jobs for the boys", this situation has certainly changed over the last six months. The sudden demise of companies such as Royal Bank of Scotland and other banking arrangements in the UK has led to further scrutiny of the whole non-executive director system which should have s...
Read MoreCitigroup on the verge of selling Egg
Online financial operation Egg is rumoured to be up for sale with US giant Citigroup recently announcing the potential disposal of all non-core assets. Egg has come to epitomise the Internet arena and the impact this had upon the financial industry. The operation was acquired from the Prudential in January 2007 with a price tag of £575 million. So what can Citigroup expect to raise with a potent...
Read MoreIs it time to step back into the stock market?
The increase in ISA allowances has placed more focus on the UK investment arena, and in particular the UK stock market, over the last few days. Is it now time to return to the UK stock market or are we being a little premature in assuming the economy has bottomed out?
There is no doubt there are significant funds on deposit for investment into the UK investment arena at some point i...
Santander controls 20% of the UK mortgage market
Santander, the Spanish financial conglomerate which has significant exposure in the UK, recently announced it was behind 20% of all mortgages written in the UK during the first three months of 2010. This is a significant increase in business and bodes well for the future of the Spanish giant which has exposure to the UK via its Abbey and Alliance and Leicester operations. It seems as though the de...
Read MoreBarclays Bank aims for the top
Fresh from the recent acquisition of Standard Life Bank, Barclays has now revealed a number of changes in the higher ranks of the company's offshoot Barclays Capital with a number of heavyweights brought on board to push the operation further forward. To be honest, Barclays Capital has always been one of the major players in the worldwide mergers/acquisitions arena and financial markets, but with...
Read More