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How much savings you are allowed before it affects the benefits
Gazella77
Posts: 201 Forumite
Hi,
I'm trying to work out how much of my savings I should leave in ISA and saving account so that it wouldn't affect any possible benefits when I claim, after my baby is born in April.
Thanks in advance
I'm trying to work out how much of my savings I should leave in ISA and saving account so that it wouldn't affect any possible benefits when I claim, after my baby is born in April.
Thanks in advance
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Comments
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Are you married or single?Gone ... or have I?0
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Dont take this as gospal but i think it either £6000 or £8000.0
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Oh, thanks.
I am single (the father of the baby doesn't care much and has no money so I am on my own).
I am working full time, trying to pay off as much of my mortgage as possible but I was advised on mortgage-free wannabe to save on ISA and other saving account as the saving rate is higher than my mortgage rate and in case of emergency I have access to some money. If I pay it into my mortgage it's gone. But on the other hand I don't want to lose out on any benefits just because I decided to save instead of putting the money into my mortgage account. So if I have anything above the limit, I'd rather pay it towards the mortgage.0 -
For tax credits it doesn't matter how much you have in savings, you just claim any 'other' income you get above £300 a year, which includes interest. Maintenance isn't counted either (if you get any)0
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jay1jay, are you sure? because I keep hearing that savings may affect benefits and I am getting more and more confused.
If you are right it means that only the interest I earn should be declared, right? Which with ISA is around £150 a year and including the other saving account, it wouldn't probably even reach £3000 -
means tested benefits, i.e. income support, housing and council tax benefit will depend on what savings you have.jay1jay, are you sure? because I keep hearing that savings may affect benefits and I am getting more and more confused.
If you are right it means that only the interest I earn should be declared, right? Which with ISA is around £150 a year and including the other saving account, it wouldn't probably even reach £3000 -
Right, so what is the difference in them? Who can have a lower/ higher limit?
Also I was told by a friend today that I shouldn't even declare cash ISA as the idea of ISA is not to be taxed anyway. Any ideas about that?0 -
yes you would have to declare an ISA if you go on to claim a means tested benefit, IS has a limit of 6k in savings, not sure about council tax benefit think 16k is the upper limit.Right, so what is the difference in them? Who can have a lower/ higher limit?
Also I was told by a friend today that I shouldn't even declare cash ISA as the idea of ISA is not to be taxed anyway. Any ideas about that?0
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