ISAs for Savings Gateway: TISA

ISAs for Savings Gateway: TISA

The Tax Incentivised Savings Association (TISA) has called on the government to make cash ISAs the default option for funds in Savings Gateway accounts upon reaching maturity.  

The Savings Gateway, which is a proposed cash saving account for those on lower incomes, aims to provide a financial incentive to save through the government matching the money people save into the scheme.  

Our view

Whilst you expect TISA to lobby for matured accounts to transfer into ISA status, thereby protecting the larger banks that offer such schemes, it is a logical step.  We suggest thought that the Government will look to recoup some of their money by only allowing maturities in taxable savings accounts, much in the same way as pension premiums receive tax relief but are then taxed when you start to take out an income.

Useful links:

Learn more about Savings Advice and related topics in the Savings Adviser Channel

Request expert financial advice now

Purchase guidance on financial planning in the Money Shop 

Back to News Summary