Best of the Week
Most Popular
1. Trumponomics Stock Market 2018 - The Manchurian President (1/2) - Nadeem_Walayat
2.Yield Curve Inversion a Remarkably Accurate Warning Indicator For Economic & Market Peril - Dan_Amerman
3.China is Now Officially at War With the US and Japan - Graham_Summers
4.Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18 - Plunger
5.Stock Market Longer-Term Charts Show Incredible Potential - Chris_Vermeulen
6.U.S. Stock Market Cycles Update - Jim_Curry
7.Another Stock Market Drop Next Week? - Brad_Gudgeon
8.The Death of the US Real Estate Dream - Harry_Dent
9.Gold Market Signal vs. Noise - Jordan_Roy_Byrne
10.The Fonzie–Ponzi Theory of Government Debt: An Update - F_F_Wiley
Last 7 days
Turkey Debt Crisis is Not Contained - 20th Aug 18
Surviving a Trade War in the Age of Trump and Brexit - 20th Aug 18
Stocks Get Closer to January's Record High, What's Next? - 20th Aug 18
London Eye Best Times to Visit for Shortest Queues - Tourist Tips - 20th Aug 18
What the Copper and Gold Crash Means for Commodities and Stocks - 20th Aug 18
Stock Market Challenging Recent High - 19th Aug 18
Venezuela's Great Bolivar Scam, Nothing but a Face Lift - 19th Aug 18
Heavy Truck Sales Sending a Bullish Sign for Stock Market - 19th Aug 18
Why Oil Prices Fell -- Stockpiles or Price Pattern? - 18th Aug 18
Why The Uranium Price Must Go Up - 18th Aug 18
Land Rover Discovery Sport 90% Motorway Driving MPG Fuel Economy in ECO Mode - 18th Aug 18
GDX Gold Mining Stocks Q2’18 Fundamentals - 18th Aug 18
SPX Losing Gains - 17th Aug 18
What Gold Is Not - 17th Aug 18
Dollargeddon - Gold Price to Soar Above $6,000 - 16th Aug 18
Stock Market Higher Again, Correction Over? - 16th Aug 18
Up Your Forex Trading Game - 16th Aug 18
Large Caps Underperformance vs. Small Caps is Bullish for Stocks - 16th Aug 18
“The Big Grab” - Failing Pension and Retirement System - 16th Aug 18
How US Indo-Pacific Vision Forgot Asian Development - 16th Aug 18
Impulse Moves in the Currencies - 15th Aug 19
Best Merlin UK Theme Park Summer Holiday 2018 - Thorpe, Alton Towers, LegoLand or Chessington? - 15th Aug 18
The Essence of Writing an Essay that Must be Understood - 15th Aug 19
Is Solar Energy Rising From The Ashes Again? - 15th Aug 18
A Bullish Bond Argument That Hides in Plain Sight - 15th Aug 18
Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future” - 15th Aug 19
A Depressed Economy And A Silver Boom - 15th Aug 19
Moving Averages Help You Define Market Trend – Here’s How - 14th Aug 18
It's Time for A New Economic Strategy in Turkey - 14th Aug 18
Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - 14th Aug 18
Dow Stock Market Trend Forecast 2018 - Video - 13th Aug 18
Stock Market Downtrend to Continue? - 13th Aug 18
More Signs That the Stock Market Will Rally Until 2019 - 13th Aug 18
New Stock Market Correction Underway - 13th Aug 18
Talk Cold Turkey Economic Crisis - 13th Aug 18

Market Oracle FREE Newsletter

Trading Any Market

Help to Save - Regular Savings Account to Pay 25% Interest per Year for FOUR Years!

Personal_Finance / UK Tax & Budget Mar 15, 2016 - 02:34 AM GMT

By: Nadeem_Walayat

Personal_Finance

Last year the conservative led government bribed the grey vote in the run up to the UK general election by way of their Pensioner Bonds that paid a high 4% interest fixed for 3 years for the over 65's, near double the market rate of the time. We'll with the about to be announced 'Help to Save' scheme then soon it will be the turn of the low paid to reap a minimum return of 25% per annum for 4 years on regular savings of £50 per month!


The specifications are for upto £50 per month to be saved in an account where after 2 years on top of any interest earned the UK government will top up the account with a 50% bonus that in simple terms amounts to an effective minimum interest rate of 25% per annum!

So based on saving the maximum of £50 per month that after 2 years would total £1200 would receive a 50% bonus of £600! And again £600 2 years later. Therefore interest of 25% per year for four years for savings of £50 per month. And remember this follows the abolishment of the 20% tax on the 1st £1k of interest earned (as of 6th April 2016) aimed at average to higher paid workers, though at current interest rates one would need about £45k in savings to earn that £1k of tax free interest. AND then there is the 'Help to Buy' scheme for first time home buyers. What's next ? 'Help to Holiday in Europe so vote REMAIN' ?

Now before you all start salivating at such high potential returns on savings accounts not seen since the likes of out of control inflation of the 1970's. There is the tight legibility criteria, for the savings accounts will be aimed at those on the lowest pay, specifically for only those in receipt of the work benefits of Universal Credit or Working Tax Credit. Also note that implementation will be some 2 years away!

The objective being that low paid savers would build up an emergency fund so as to better cope with proposed and future benefits cuts of an estimated £2 billion per annum which is set against the savings account proposal likely cost no more than £70 million, so unlikely to be utilised by even 10% of the estimated 3.5 million people who could benefit from this cash handout.

In the grand scheme of things this is just another 'small' manifestation of quantitative easing aka money printing of the central bank showering crisply printed bank notes down on the economy, and in money terms not even 0.001% of the amount the Bank of England stuffed into its bankster brethren's coffers.

Ensure you are subscribed to my always free newsletter (only requirement is an email address) for the following forthcoming analysis -

  • US Interest Rates and Economy
  • US Dollar Trend Forecast
  • UK Housing Market Trend Forecast
  • Stock Market Trend Forecast
  • US House Prices Detailed Trend Forecast
  • Gold and Silver Price Forecast

Also check out my recent videos on the forthcoming EU Referendum, one of a battle between the BRITISH PEOPLE vs the RULING ELITE -

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2016 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules