Latest news with #CashISA
Yahoo
5 days ago
- Business
- Yahoo
Here's how investors can target a £50k passive income in retirement with an ISA!
You'll often read that Stocks and Shares ISAs are the best way to build cash for retirement. This is thanks to the excellent long-term returns that share investing tends to provide. With a £500 monthly investment, here's how an investor could generate a healthy passive income in retirement. As I mentioned, the returns enjoyed by Stocks and Shares ISA investors can be considerable. At 9.64%, the average yearly return for the last 10 years trumps the 1.21% return that the Cash ISAs provided. That's according to price comparison website Moneyfacts. Accordingly, prioritising investment in one of these riskier products could be the most effective way to build enough wealth for a comfortable retirement. Of course, Cash ISAs can also play a vital role in wealth creation by reducing risk and providing a stable return across the economic cycle. Let's consider how someone with £500 to invest each month could make it work. How much they split between share investing and cash will involve a delicate balance between their long-term goals and their attitude to risk. In this case, let's say they prefer a 75/25 split that might deliver solid growth while also providing a safety net. If they can match the averages of the last decade, they would — after 30 years — have: £785,269 in their Stocks and Shares ISA £54,220 in their Cash ISA This would give them a combined retirement portfolio of £839,489 they could use for a passive income. With this money, they could purchase dividend shares, which should give them a steady flow of income. It would also give them a chance to continue growing their portfolio. If they bought shares yielding 6%, they'd have £50,369 to live on each year from their portfolio. Combined with the State Pension, this could give them a bountiful total retirement income. Investment trusts like the JPMorgan Global Growth & Income (LSE:JGGI) product can be great ways to build wealth with a Stocks and Shares ISA. Thise diversified approach provides a way to target capital gains and passive income in a way that effectively spreads risk. The JPMorgan vehicle's aim is to hold between 50 and 90 companies at any one time, across a spectrum of industries and regions: Through the use of gearing (borrowed funds) — which today stands at 1.85% of shareholders' capital — the trust's managers can also better capitalise on investing opportunities as they arise. Like other equity-based investment trusts, JPMorgan's product can still fall during broader stock market downturns despite its diversified approach. Its use of gearing may also present higher risk. But I think its long-term record speaks for itself. Delivering an average annualised return of 12.8% since 2015, it's proved a great way for UK investors to build wealth for retirement. The post Here's how investors can target a £50k passive income in retirement with an ISA! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mirror
19-05-2025
- Business
- Daily Mirror
Major UK bank issues huge blow to 1.9 million customers after BoE update
Brits may want to take swift action following the BoE's decision to cut the base rate to 4.25% - which has resulted in several banks including Ulster and Monzo slashing their interest rates Swathes of savings Brits have been dealt a major blow, after the Bank of England (BoE) announced it had cut the base rate from 4.5 per cent to 4.25 per cent. This is the interest rate that the bank charges other lenders when they borrow money, and in theory, means Brits will be charged less for lending. The move will be a relief for households with a tracker mortgage, with experts predicting monthly payments should decrease by around £29. However, a lower base rate is bad news for savers - who have been cashing in on lucrative interest rates exceeding five per cent. Ulster Bank, which is part of the NatWest Group, has consequently slashed its interest rates on a slew of its Non Payment and Payment accounts. It means Brits may want to transfer their money into a different account, or risk missing out on accrued interest. In email correspondence viewed by the Mirror, Ulster Bank said: "We want to let you know we're changing the interest rate on your account(s). You may have heard the news that the BoE has decided to reduce the based rate. We've been looking at our rates too, as well as what's on offer from other savings providers right now, and we've decided to reduce some of our interest rates." The shake-up does not impact Ulster Bank's Cash ISA account. This currently offers 1.4 per cent interest for balances between £1 and £24,999 and a 2.70 per cent AER for balances above £25,000. (Remember, you can only save £20,000 in a Cash ISA per tax year). The Help to Buy ISA is however impacted, with interest rates slated to drop from 2.20% / 2.18% to 2.05% / 2.03% on May 30. This type of account is no longer available to open - and is different to the Lifetime ISA (LISA) which offers £1,000 bonuses every tax year. Get the best deals and tips from Mirror Money WHATSAPP GROUP: Get money news and top deals straight to your phone by joining our Money WhatsApp group here. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice. NEWSLETTER: Or sign up to the Mirror's Money newsletter here for all the best advice and shopping deals straight to your inbox. Ulster Bank's interest rate changes - full list The following accounts will keep their AER/ Gross p.a. (variable) until July 14, 2025. The decreased interest rate will come into effect on July 15. Loyalty Saver Balance £1-£4,999: decreasing from 1.50% - 1.25% Balance £5,000+: decreasing from 4.25% to 4.00% Private Reserve Balance £1 - £9,999: decreasing from 1.50%/ 1.49% to 1.25%/ 1.24% Balance £10,000+: decreasing from 4.25% / 4.17% to 4.00%/ 3.93% urfirst Balance £1+: decreasing from 2.25% to 2.05% Easy Access Savings Account Balance £1+: decreasing from 1.50% to 1.25% Special Interest Deposit Balance £1-£15,000: decreasing from 1.00% to 1.75% Balance over £15,000: decreasing from 1.50% to 1.25% Adapt Account Balance £1: decreasing from 2.25% / 2.23% to 2.05% / 2.03% Article continues below Ulster isn't the only bank that will be making changes to its savings accounts following the BoE announcement. Monzo has already confirmed it is lowering its Instant Access savings from 3.50% AER (variable) to 3.25% AER (variable) on May 27. Moneybox, an app-only bank that is popular for ISA products, is also lower Moneybox Lifetime ISA from 3.55% AER (variable) to 3.30% AER (variable) on May 29. *This article does not constitute financial advice. Always read the full terms and conditions before opening or closing a savings account.
FF News
07-05-2025
- Business
- FF News
Plum Launches Lifetime ISA to Help People Save for Their First Home
Smart money app Plum is launching a Cash Lifetime ISA today, designed to help customers put money aside for their first home or retirement. The Plum Lifetime ISA, which is FSCS protected, offers an interest rate of 4.61% AER (variable), including a 1-year bonus of 1% AER (variable), as well as the Government bonus of 25%. This allows savers to build up their funds more quickly to give them the best chance of reaching their goals. Buying a house is a key milestone for many people, but the cost of buying in the UK has skyrocketed. First time buyers now need, on average, a deposit of £60,000 for their first home and with the cost of living having increased substantially over the last few years, savers need extra support as they plan for this major goal. To help with this, Lifetime ISAs were launched by the UK Government in 2017 to give savers a boost when putting money aside for a first home or retirement, within the ISA tax wrapper. Now Plum is bringing this product to its UK customer base, with the intention of offering Plum customers a range of holistic options for growing their money over the long-term. Plum CEO and founder Victor Trokoudes comments: 'With the continued popularity of our Cash ISA since launch, it has become clear that many of our customers are keen to keep their money within a tax-wrapper and benefit from high interest rates. We'll be bringing the benefits of ISAs to a new audience with the launch of our Lifetime ISA, which is designed to reward savers for having a goal and keeping up the habit consistently over time.' 'By offering a Lifetime ISA along with our other money management products, we're giving our customers a brilliant opportunity to boost their stash and grow their money for life. High interest, paired with tax benefits and the Government bonus, ensures that the returns from money set aside into the Lifetime ISA can give customers the opportunity to grow their cash over time. This should help them along the way to reach their key life goals, such as buying their first home, or saving for retirement'. Plum's Lifetime ISA will sit alongside the app's other popular money management products, including a Cash ISA, Stocks & Shares ISA, and General Investment Account with stocks. The app now has more than 2m customers across Europe and holds over £2bn in assets under administration. People In This Post Victor Trokoudes Plum
Business Mayor
28-04-2025
- Business
- Business Mayor
Cash ISA update as savers are told to take urgent action
Cash ISA savers have been urged to take one action as an important deadline approaches. Those who have a Cash ISA are being urged by money experts to act before May 1 in order not to miss out when new changes come into effect. The Bank of England is anticipated to cut rates at the next Monetary Policy Committee meeting, which takes place on May 8, which is expected to trigger a fall in Cash ISA interest rates. Now, savers are being urged to lock away their money as soon as possible to accounts with higher interest rates to make sure they are getting the most out of their money. Founder and managing director at financial education specialists Investing Insiders has urged people to place their money into a fixed Cash ISA, which are protected against base rate reductions. Savers who tranfer their money to these accounts now will ensure that they enjoy the current interest rates for a year. Medlicott said: 'With Cash ISAs currently offering up to nearly five per cent in interest on deposits and some offering even more with introductory rates, savers can gain peace of mind over the returns they will receive and some great rates. 'However, most of the top-paying accounts offer 'variable' rates, meaning they can go up and down as the Bank of England rate fluctuates. You will generally get easier access to the cash held in these accounts.' She added: 'Fixed rate savings accounts typically require you to lock your money away for a set period of time, but offer certainty over interest rates, no matter what the Bank of England does.' Reports of Government plans to reduce the Cash ISA limit have been shared by money expert Martin Lewis, placing more urgency on savers to secure their benefits ASAP. Chancellor of the Exchequer Rachel Reeves is rumoured to be considering cutting the current ISA limit of £20,000 to as low as £4,000. Lewis said: 'Rachel Reeves, has been evaluating cutting the cash ISA allowance. That's not a rumour. I know it for fact. And it's being talked about in political and policy circles. What we don't know is if anything has been decided and if it has, what has been decided. 'So, as a very basic concept, a cash ISA is just a savings account where the interest is never taxed and you can put in up to £20,000 per tax year – and we've just had the start of a new tax year on 6 April. Once the money is in a cash ISA, it stays tax-free year after year. 'Now, the rumour is, what's being considered, is cutting the cash ISA limit from the current £20,000 down to as low as just £4,000. And most people think if there is to be an announcement on it, it would be in the Autumn Budget coming later this year – though nothing is certain.' READ SOURCE
Wales Online
27-04-2025
- Business
- Wales Online
People with a cash ISA given warning as savers told 'act before Thursday'
People with a cash ISA given warning as savers told 'act before Thursday' The best Cash ISA interest rates are set to fall if and when the Bank of England cuts rates next month as expected - meaning savers are urged to act now Financial gurus are sounding the alarm for those with Cash ISAs (Image: (Image: Getty) ) Financial gurus are sounding the alarm for those with Cash ISAs, advising swift action before May kicks off as top rates are expected to disappear. The spotlight is on Cash ISAs amid intense debate and rumours that Chancellor Rachel Reeves might slash the Cash ISA deposit ceiling from £20,000 down to possibly £4,000 – a move confirmed to be under discussion by money saving expert Martin Lewis. With finance experts pressing savers to act before Thursday, May 1, there is a rush to secure the best Cash ISA interest rates before they likely drop following a predicted Bank of England rate cut next month. Antonia Medlicott, the founder and managing director at Investing Insiders, a financial education firm, warns that the current attractive rates won't stick around for long. Article continues below She advises transferring funds to a fixed Cash ISA soon to safeguard against potential base rate cuts. For money-saving tips, sign up to our Money newsletter here Medlicott remarked: "With Cash ISAs currently offering up to nearly 5% in interest on deposits and some offering even more with introductory rates, savers can gain peace of mind over the returns they will receive and some great rates.", reports the Express. She also noted: "However, most of the top-paying accounts offer 'variable' rates, meaning they can go up and down as the Bank of England rate fluctuates. You will generally get easier access to the cash held in these accounts." Antonia, a financial expert, has advised savers to consider fixed rate accounts and long-term ISAs in anticipation of a Bank of England rate cut expected in May. She explained: "Fixed rate savings accounts typically require you to lock your money away for a set period of time, but offer certainty over interest rates, no matter what the Bank of England does." She also suggested that moving spare cash from low-interest accounts into an ISA can protect it from tax on interest, dividends and capital gains. For those concerned about potential changes to Cash ISAs, Antonia revealed that stocks and shares ISAs generally perform better. She stated: "Only 21% of the adult population use investment ISAs compared to 40% who use a cash ISA. Many people avoid investing because they simply don't feel they have the knowledge and education to approach it." She further added: "Investing is well suited to those who can put their funds away for at least five years, and if you can afford to look more long-term, investing offers greater potential gains. Article continues below Historically, those who have put their faith in the markets have enjoyed far greater returns than those who used savings accounts instead." Get daily breaking news updates on your phone by joining our WhatsApp community here . We occasionally treat members to special offers, promotions and ads from us and our partners. See our Privacy Notice
