Where should I save?

shoney

Hello all,

My dad has £26,000 of savings in a low interest savings account. I have eventually managed to persuade him to move this money to make it work for him. He doesn't have an ISA at the minute and he is a high rate taxpayer. Where should he save the money?

Three ISAs can be opened, under his name, his sons name and his wifes name to gain maximum tax free interest, but I'm unsure as to which accounts are the best and what to do with the rest of the money.

Any suggestions will be greatly appreciated.

Thank You

Lokolo

Ok without meaning to offend you, will he trust you with this money?

Is his wife a taxpayer?

Basically he can open the 3 ISAs in those names (although he can't do it, he will have to give money to you, and then to his wife, then you open them), but then the moneys not his. Its yours and his wife's.

However I know family is family so trust is usually ok.

Thats £10,800 in tax free interest.
Plus another £10,800 in April.

So only leaves £4k.

If his wife is a non tax payer or a 20% tax payer its worth having the money go to her as any interest earnt will be accordingly (so non t ax payer means no tax on interest, a normal tax payer means 20% taxed rather than his at 40%)

For best rates I used moneysupermarket.com/savings

But everyone to their own.

shoney

Lokolo wrote: »

Ok without meaning to offend you, will he trust you with this money?

Is his wife a taxpayer?

Basically he can open the 3 ISAs in those names (although he can't do it, he will have to give money to you, and then to his wife, then you open them), but then the moneys not his. Its yours and his wife's.

However I know family is family so trust is usually ok.

Thats £10,800 in tax free interest.
Plus another £10,800 in April.

So only leaves £4k.

If his wife is a non tax payer or a 20% tax payer its worth having the money go to her as any interest earnt will be accordingly (so non t ax payer means no tax on interest, a normal tax payer means 20% taxed rather than his at 40%)

For best rates I used moneysupermarket.com/savings

But everyone to their own.

Thanks for the quick reply. He trusts me with the money, hes here with me at the minute, it's all the talk of credit crunch and turmoil which makes him not trust the banks. His wife is a 20% taxpayer, so the money should be deposited by her, which he has no problem with. I'll check out the best rates and see what I can find.

Thanks for your help.