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My mum has a current account, isa and savings account from what I can see she is getting very little interest, I would like some advice pls?

by halpino 12 August 2010 |

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My mum's account as it stands:-

£15K in her current account
£3.7K in her tax haven ISA - gross interest - 0.83%
£5K in her savings - 0.10%

My mum is 62, she is married, she works part-time, she has a few flats that bring he income each month (current account) I was hoping someone would advice me what I should tell my mum to put her money in so she can see a good return.
Thank you,
Halpino

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216

SoftwareBear posted
put as much as you can into the ISA now and transfer each year until most of the cash is in the ISA.
Independently the ISA should be transferred to another provider now and then every year (or when the deal ends) to keep on top of the latest rates.
0.83 isn't the worst ... but you can easily get 2% for easy access and then 3-4% depending on the lock away time of the cash ... whether it's fixed term ... no withdrawals etc.
But you are loosing far more interest having so much cash in the current account.
Alternately ... does she want to invest in another flat ?
Posted on 12 August 2010 | Love 0 loves Report
879

MikeGG1 posted
I assume that your mother is over the personal allowance limit and is therefore a basic rate taxpayer.
Is she drawing the Basic State Pension? If not, I would suggest that she doesn't until she stops the part-time work and then opts for the enhanced pension rather than the taxable lump sum for arrears.
The ISA can be transferred to another account earning around 3% in many places, either as a one year bond or as an instant access with a bonus for the first year. Either way she would have to move it again in a year to get a reasonable rate. She could get a higher rate for investing it for a longer period.
She should put another £5,100 into the new ISA.
If her current account is not with Santander, she could consider opening one. They are offering 5% on the first £2,500 of the balance for the first year.
Any other balances can be invested in the same way as described in ISAs above but without the ISA wrapper.
Mike
Posted on 12 August 2010 | Love 0 loves Report
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halpino posted
She is over the personal allowance limit, and she is now drawing the basic state pension that goes into her current account.
She would like to have her wage and her pension in a seperate account instead of the account she has already for the rent that comes into the flats.
Thank you for your advice, I will print this out and give it to her to sort out.
Chris
Posted on 12 August 2010 | Love 0 loves Report
174

JoeEasedale posted
A better bet for the current account is a Lloyds Classic with Vantage. That pays 4% on the entire balance up to £7000(so put the rest elsewhere), provided that there is a minimum balance of £5000.
Posted on 12 August 2010 | Love 0 loves Report
25

spidermev posted
She could open a joint ISA with hubby and put away £10200
Posted on 12 August 2010 | Love 0 loves Report

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