Partly Cloudy

Partly Cloudy

max temp: 6°C

min temp: 3°C

Search

Budget 2014: Savers in Suffolk will be a ‘paltry’ £19 a year better off with new combined tax-free Nisa, says Money Saving Expert Martin Lewis

PUBLISHED: 16:08 19 March 2014 | UPDATED: 16:09 19 March 2014

Chancellor of the Exchequer George Osborne holds the budget box

Chancellor of the Exchequer George Osborne holds the budget box

Savers in Suffolk will be able to put aside up to £15,000 a year tax free, the Chancellor announced today.

Revealing his 2014 Budget, Chancellor of the Exchequer George Osborne said the current cash ISA and the stocks and shares ISA will be combined to create a new ISA - Nisa.

Nationally, banks and building societies have hailed the move, with nationwide describing it as “much-needed support for ordinary savers”.

But Moneysavingexpert.com founder Martin Lewis said the benefits of the Nisa would be significantly held back by paltry interest rates available on cash deposits.

He calculated the additional tax gain from the increased limit would work out to just £19 a year more on the best deal in the market, which pays 1.65%, for basic rate taxpayers who invest the full £15,000.

He said: “While it’s a good long term gain, dig through the current numbers and the advantage of increasing the cash ISA limit from £5,940 to the new Nisa limit £15,000 isn’t as big as many will think.

“This is because you can’t ignore the fact that cash ISA rates are at all-time lows.”

Will you be taking advantage of the Nisa? Share your thoughts on the budget via Twitter today using #Budget2014 #Suffolk, or leave a comment below.

6 comments

  • It does strike me that cash ISAs are not all they're cracked up to be at the rates they offer are often lower than non-ISAs. However the NISA might well be useful for folk like me who are not interested in saving via stocks and shares.

    Report this comment

    Baptist Trainfan

    Wednesday, March 19, 2014

  • Surely this applies to the whole of the UK and not just for the people of Suffolk ?!

    Report this comment

    Sir Casm

    Wednesday, March 19, 2014

  • £19? My calculation is that the EXTRA amount permitted to be saved in a NISA is £15,000 minus the present (from April 5th) allowance of £5940 which equals £9060 extra allowance. At the 1.65% rate used that means interest on the £9060 is £150 p.a. Not paying tax at 20% saves £150 X 20% (15th) which is £30 ... not £19.

    Report this comment

    Johnthebap

    Wednesday, March 19, 2014

  • I think there is confusion between "investing" and "saving".

    Report this comment

    Ipswich Entrepreneur

    Wednesday, March 19, 2014

  • Where did he find "the best deal in the market, which pays 1.65%"? I'm assuming he's based in on someone starting off on an ISA for the first time and only having £15,000 in it from day one. My Cash ISA is at 1.85%. You can get fixed ISA (2 years I believe) at 2% and higher. Not much of an expert!

    Report this comment

    Chris Church

    Wednesday, March 19, 2014

  • £15,000 @ practically nothing % won't make much difference to what it is now.

    Report this comment

    Tony G

    Wednesday, March 19, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Six mile tailbacks have been reported on the A14 after a crash involving a car and lorry.

Campaigners last night called for more action to “urgently reverse these alarming trends”, but praised victims for showing bravery to convict perpetrators.

A drunk customer who returned to a Suffolk pub brandishing a chainsaw after he was asked to leave by door staff has walked free from court after a judge decided not to send him straight to prison.

Seemingly never-ending roadworks which have snarled up Stowmarket for more than half a year are set to labour on for at least another two months.

Drivers in Ipswich needing to top-up with fuel this morning will struggle to find a litre of petrol for less than 114.7p.

Pictures from the 1990s show students getting to grips with Kendo at Suffolk College.

More checks have been carried out in Ipswich by police investigating the murder of a man earlier this year.

Most read

Eating Out in the Broads

cover

Click here to view
the Eating Out
supplement

View

Visit the Broads

cover

Click here to view
the Visit the Broads
supplement

View

Most commented

HOT JOBS

Show Job Lists

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24