truman Posted January 4, 2013 Share Posted January 4, 2013 I just wonder why people are taxed on interest gained from bank and building society accounts. You hand over your money so that banks can loan it to businesses etc and the bank pays you a pittance of interest usually less than half the rate of inflation. So when you go to get your money back there is less in real terms than you deposited. Then to add insult to injury the tax man takes 20% of the interest gained. WHY? Does this encourage people to save for their old age? It seems to encourage people to spend their money and hope the state picks up the tab for their old age. If I were rich enough to not have to work but, instead, all my income came from my savings account then are you saying I shouldn't be taxed on it? Link to comment Share on other sites More sharing options...
POLSKI Posted January 4, 2013 Share Posted January 4, 2013 Take out a Maxi ISA with the likes of Hargreaves Lansdown ( http://www.hl.co.uk/ ) and look after your own investments. But before dabbling with stocks and shares, DO YOUR OWN RESEARCH on the companies you buy into, OR, stick to buying into various investment funds. Providing this is done through your ISA then all dividends, interest, etc is tax free. Link to comment Share on other sites More sharing options...
Bypassblade Posted January 4, 2013 Share Posted January 4, 2013 I understand Uptown Girls point, when you think about it; we work, we get paid & pay tax, why should we be taxed again on what we save from our earnings. I know we have to pay tax, but we've paid it once on our earnings and just about everything else we have and do, sorry but we are taxed to death. Link to comment Share on other sites More sharing options...
truman Posted January 4, 2013 Share Posted January 4, 2013 I understand Uptown Girls point, when you think about it; we work, we get paid & pay tax, why should we be taxed again on what we save from our earnings. I know we have to pay tax, but we've paid it once on our earnings and just about everything else we have and do, sorry but we are taxed to death. You're not taxed on the capital you put into the bank but on the earnings you get from the interest...it's income so is taxed like other income.. Link to comment Share on other sites More sharing options...
mumkin Posted January 4, 2013 Share Posted January 4, 2013 You're not taxed on the capital you put into the bank but on the earnings you get from the interest...it's income so is taxed like other income.. But don't you dare get ill and have to be put into a nursing hom. Watch your savings diminish then. Link to comment Share on other sites More sharing options...
Manlinose Posted January 4, 2013 Share Posted January 4, 2013 sorry but we are taxed to death. and afterwards Link to comment Share on other sites More sharing options...
mossdog Posted January 4, 2013 Share Posted January 4, 2013 Yes, put any savings in a Cash ISA. You can put £5680 a year into one and it's not taxed. However interest rates are so ridiculously low at the moment that even untaxed you will struggle to find any account which will beat inflation so the value of your savings will steadily decline. It's not a good time to have any assets in cash. Neither is it a good time to put your money into an ISA!..........most are pathetic performers with high charges unless you do it your self. ISAs have had their day,they were good at one time.............but if you are silly enough to hand money over to the city boys in the stock exchange and think they will be good enough to give you much more than a pittance back..............then you are deluding yourself. Link to comment Share on other sites More sharing options...
Nagel Posted January 4, 2013 Share Posted January 4, 2013 As the stock market has hardly budged this past decade many pension funds are on the brink of not meeting their obligations. I'm not sure where you get your figures from. The FTSE 100 was 3970 a decade ago, today it's 6090. That's a 53% increase which is pretty good even allowing for trading costs and inflation. Link to comment Share on other sites More sharing options...
Guest sibon Posted January 4, 2013 Share Posted January 4, 2013 But didn't Gordon Brown introduce a tax on pension funds dividends that rather knocked the shine off pensions. As the stock market has hardly budged this past decade many pension funds are on the brink of not meeting their obligations. The stock market has swung violently back and forth in the last decade. Pretty good conditions for skilled investors to make a killing. If pension funds don't meet their obligations, serious questions need to be asked of the fund managers. After all, they have taken far more from pension funds that Gordon Brown ever did. Link to comment Share on other sites More sharing options...
Nagel Posted January 4, 2013 Share Posted January 4, 2013 Neither is it a good time to put your money into an ISA!..........most are pathetic performers with high charges unless you do it your self. ISAs have had their day,they were good at one time.............but if you are silly enough to hand money over to the city boys in the stock exchange and think they will be good enough to give you much more than a pittance back..............then you are deluding yourself. Definitely do it yourself, choose your own funds to invest in. The best are passively managed tracker funds since the annual charges are so small. Over the last year a FTSE 250 tracker would have risen 24%. Try getting that rate of return on your savings elsewhere. Link to comment Share on other sites More sharing options...
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