Invest above 30k NSI possible?

BritRael

A friend of mine has 30k in National Savings, and wants to invest another 30k for safety in the current climate. As I don't have any, he's asked if I'll do it in my name. I don't have any particular problem with doing it (and of course his brakes could 'fail' on his car and I'd be 30k richer! ) but I am concerned that 'they' could be watching and question where I got the money. Any (sensible) ideas??

talana

I don't get it. This is NS&I right, so why doesn't he just deposit another £30K in his name? End of story.
The whole idea of doing it in your name makes no sense.

tanith

I think its a very risky business and probably illegal . There are plenty of people here who will give the ins and outs of it..
Has your friend even considered that if you were to 'fall off the perch' as it were his money would be part of your estate and he would have the devils own job to get it back?

RayWolfe

He may give you the £30,000. It will then be yours.

BritRael

talana wrote: »

I don't get it. This is NS&I right, so why doesn't he just deposit another £30K in his name? End of story.
The whole idea of doing it in your name makes no sense.

He tells me that NS&I have an investment limit of 30k, therefore he doesn't think that they would allow him to invest further. I have no idea if this is correct or if so, why.

chardir

BritRael wrote: »

He tells me that NS&I have an investment limit of 30k, therefore he doesn't think that they would allow him to invest further. I have no idea if this is correct or if so, why.

This is half true. There's a limit of £30k in premium bonds, plus another 15k x2 in index-linked savings certificates plus another 15k x2 in fixed interest savings certificates.

http://www.nsandi.com/savingneeds/taxfreeinvestments.jsp

Plus their non-tax-free accounts - still safe but not good value.

dunstonh

He tells me that NS&I have an investment limit of 30

chardir is correct but also, the NS&I certificates come in issues. If he has a previous issue, he can buy the current issues.

sdooley

This could cause you problems - for example if you were to claim benefits in the future they would not be allowed as you 'have enough savings' (even though they're not technically yours).

As others have said, your friend could invest in ordinary (non-tax efficient) NS&I accounts.

marksmith99

You can also hold the savings certs in trust, which effectively doubles your limit (but would need someone to be the trustee, could be you), but this would be better than having it in your name I would have thought. He could be a signatory for withdrawals as well as you as the trustee I think.

BritRael

chardir wrote: »

This is half true. There's a limit of £30k in premium bonds, plus another 15k x2 in index-linked savings certificates plus another 15k x2 in fixed interest savings certificates.

http://www.nsandi.com/savingneeds/taxfreeinvestments.jsp

Plus their non-tax-free accounts - still safe but not good value.

Sorry for not clarifying; he wants to invest in Premium bonds.

BritRael

marksmith99 wrote: »

You can also hold the savings certs in trust, which effectively doubles your limit (but would need someone to be the trustee, could be you), but this would be better than having it in your name I would have thought. He could be a signatory for withdrawals as well as you as the trustee I think.

This sounds a better idea. He could put it in trust for one of his kids.
Apologies for the dumb question, but er... how is this done? Would he simply contact NS&I and apply for 30k more premium bonds and say "I want them in trust" etc?