Is it really worth having savings???? Taxed on income then when it builds into savings taxed again,I know we need banks but do we really need to have so much in them or is there a better alternative |
Reply privately, Reply in forum +quote
or View forums list | |
It's only interest on savings that is taxed not the actual savings. And you get a tax free savings allowance and can put money into a tax free ISA. Alternatively you can invest but any gains are also taxed. It's about what works for you.
And if you have savings think of yourself as lucky in the first place, a lot of people struggle from one payday to the next. |
Reply privately, Reply in forum +quote
or View forums list | |
I understand we need a safety net and I’m not rich but having 20,30,40k sitting in a bank earning a pittance then paying government taxes on it isn’t for me , I find I can make better returns in gold and cgt free |
Reply privately, Reply in forum +quote
or View forums list | |
"I understand we need a safety net and I’m not rich but having 20,30,40k sitting in a bank earning a pittance then paying government taxes on it isn’t for me , I find I can make better returns in gold and cgt free"
You pay CGT on most types of gold |
Reply privately, Reply in forum +quote
or View forums list | |
The world is set up for people with big money to keep it and make more. As a result, it's set-up for 95% of the population to pay interest on loans or be taxed on savings. Between inflation and low interest on savings, the best way to actually save money is to have manageable healthy levels of debt. If you're getting a savings rate of 2% and inflation is running at 3 or 4, by the time your £1 has been in savings for 5 years it will only be worth 80p in real terms, whereas you can use your money to pay off your mortgage quicker and make a real difference that way. Inflation is a killer and used by governments to their advantage in the bond markets - they can make a lot of money by fixing the rate where they want them. £1M in your bank account today is the same as having £550K in the year 2000 - i.e. to buy the same amount today as you could in the year 2000, you would have needed £2m to be a millionaire. Property values have exploded in that tome (deliberately), so use your money to but multiple H.M.O'S!!!!!!!!
**Dont quote me or take those figures as gospel, but they are definitely in the ball park!!!! |
Reply privately, Reply in forum +quote
or View forums list | |
 |
By *avie65Man 8 weeks ago
In the west. |
"I understand we need a safety net and I’m not rich but having 20,30,40k sitting in a bank earning a pittance then paying government taxes on it isn’t for me , I find I can make better returns in gold and cgt free"
You can earn £1000 per year in interest before you pay tax on it.
And as has previously been mentioned, ISAs are tax free, you just need to search for the best rates as traditional banks do usually give you the best rate. |
Reply privately, Reply in forum +quote
or View forums list | |
"Is it really worth having savings???? Taxed on income then when it builds into savings taxed again,I know we need banks but do we really need to have so much in them or is there a better alternative "
ask Martin Lewis
|
Reply privately, Reply in forum +quote
or View forums list | |
People put their money into gold, classic cars, art, property and all sorts other than banks.
I don't have enough for that so an ISA and a high interest savings account are what I use. Interest rates are so low that it's hardly better than keeping it under the mattress but it's safer in the bank and if the central heating boiler goes, the house needs maintenance, the car has to have repairs or the kids need money there's a little there to cover it. |
Reply privately, Reply in forum +quote
or View forums list | |
Unless you have massive earnings and are an additional rate tax payer you’ll have a personal saving allowance which will more than cover the interest you’ll earn on bank interest savings especially if only modest amounts. If you’ve over £10k in a savings account you can put the rest in an isa (investment or cash) and all growth/ income/ interest is tax free. And if you can afford to put more than £20k a year into saving you’re doing pretty well and some tax if probably affordable! |
Reply privately, Reply in forum +quote
or View forums list | |
"Premium bonds wins are not taxed. And are instant access."
Premium bonds are a bad investment as you earn no interest, but your money depreciates over time.
The odds of winning are so low you are only likely to win even a small prize once you have more than 10k in there. The official odds of winning are 1 in 22,000 on the pound.
Likelyhood of winning £25 is 1 in 71,364 and winning a million is 1 in 64.36 billion.
At least its government backed so its safe, but no other plus points unfortunately. |
Reply privately, Reply in forum +quote
or View forums list | |
"Premium bonds wins are not taxed. And are instant access.
Premium bonds are a bad investment as you earn no interest, but your money depreciates over time.
The odds of winning are so low you are only likely to win even a small prize once you have more than 10k in there. The official odds of winning are 1 in 22,000 on the pound.
Likelyhood of winning £25 is 1 in 71,364 and winning a million is 1 in 64.36 billion.
At least its government backed so its safe, but no other plus points unfortunately. "
It's like playing the lottery but you don't lose your stake. If you want your money to grow there are other savings that guarantee that, but they don't give you a chance to win £1 million |
Reply privately, Reply in forum +quote
or View forums list | |
"Premium bonds wins are not taxed. And are instant access.
Premium bonds are a bad investment as you earn no interest, but your money depreciates over time.
The odds of winning are so low you are only likely to win even a small prize once you have more than 10k in there. The official odds of winning are 1 in 22,000 on the pound.
Likelyhood of winning £25 is 1 in 71,364 and winning a million is 1 in 64.36 billion.
At least its government backed so its safe, but no other plus points unfortunately.
It's like playing the lottery but you don't lose your stake. If you want your money to grow there are other savings that guarantee that, but they don't give you a chance to win £1 million "
If you think about it... the lotto is little more than a Ponzi scheme! |
Reply privately, Reply in forum +quote
or View forums list | |
Probably going to sound like a tin foil hat wearer, but history should tell us enough so theres a reason why I wont use a bank for anything other then paying bills. My savings are in assets such as cash, watches, silver and a bit of gold. All secure in a location known to me and only accessible by me.
|
Reply privately, Reply in forum +quote
or View forums list | |
I have savings, for rainy days. Like I need to book a other holiday now moments. Have shares and an ISA also, way too grown up now. It's worth it saving, if it's spare cash. But not forcing yourself. Ulitanely we are all paying for awful decisions by a few and been fed to the lie by people like Martin Lewis. Just see his recent student loan rant. But he championed them originally. Clear what was going to happen. |
Reply privately, Reply in forum +quote
or View forums list | |
"Is it really worth having savings???? Taxed on income then when it builds into savings taxed again,I know we need banks but do we really need to have so much in them or is there a better alternative "
It's getting to the point where it's becoming questionable although you can still get 4.35%, but as you are over 55 it probably makes more sense to wrap it in an SIPP risk free something like overnight money markets will track the base rate risk free or something like VLS80 is historically returning 10-20% per year |
Reply privately, Reply in forum +quote
or View forums list | |
"I understand we need a safety net and I’m not rich but having 20,30,40k sitting in a bank earning a pittance then paying government taxes on it isn’t for me , I find I can make better returns in gold and cgt free"
Interest rates at banks are pretty good considering they have been 0.5 to 2% max for the last 15 yrs? It's only these last few where you've been able to get 4+% fixed from a high street bank for 5 years - it's great tbh. When this is a guaranteed return on savings in markets that are so volatile, it's a bit of a no brainer for me.
I recently moved a relative away from a 'wealth manager' to a fixed isa as they were was achieving 1.8%pa or 2.5% over 5yrs. |
Reply privately, Reply in forum +quote
or View forums list | |
"Probably going to sound like a tin foil hat wearer, but history should tell us enough so theres a reason why I wont use a bank for anything other then paying bills. My savings are in assets such as cash, watches, silver and a bit of gold. All secure in a location known to me and only accessible by me.
"
This is giving Ron Swanson |
Reply privately, Reply in forum +quote
or View forums list | |
» Add a new message to this topic
