what to do with this money

chelleybelley

hi im posting this for my dad who has no computer...he currently has around 16,000 in savings and does not know what to do with it,his isa has ended and looking at the current rates he does not think he wants to reinvest in one at this time,he is happy to open more saving accounts as there are some around at the mo paying around 4%.
i was just wondering if anyone has any ideas as what his best options are at this time.
any ideas welcome please. thanks.

mini_lidi

Well ISA's may not be amazing but there tax free so i would still use my yearly allowance if i was you

Zebra

Have you read these two articles?
Savings Accounts
Regular Savings

G_M

Assuming he is a tax-payer, it's still worth transferring into a new ISA even if the rate is lower than could be found in a non-ISA savings account. Once moved out, he can never regain the tax-free status of that £16,000. When interest rates start going up again, or if a provider launches a new ISA with a good rate, he will be limited to putting in his £3600 pa allowance - the 16K will be stuck paying tax for ever.
Find the best ISA rate you can, with easy access or, say 3 months notice max, then when a better rate comes along you can take advantage of it.

And remember, 4% non-ISA for a standard rate tax payer = 3.2% after tax (or 2.4% for a higher rate tax-payer)

Mikeyorks

chelleybelley wrote: »

.... his isa has ended and looking at the current rates he does not think he wants to reinvest in one at this time

ISAs don't 'end' .... they continue, so are you certain of the facts? Even if it's a fixed rate / fixed period ISA ..... they normally convert to easy access ... but they remain in the ISA wrapper. If that's been the relevant product for him so far - it probably remains so. Interest rates have really only reduced in harmony with Savings rates.

Lol_UK_2

Honestly, anything in the banks is going to be in danger over the next year...only because when we hit big inflation, any gains in interest will be all but wiped out!
My advice (and I will tell everyone til I'm blue in the face)- buy some gold- the ONLY thing that will hold and increase in value over the next few years. Check out Peter Schiff on youtube- he ain't been wrong yet, and things are going to get a lot worse this year...

neil324

Lol_UK wrote: »

Honestly, anything in the banks is going to be in danger over the next year...only because when we hit big inflation, any gains in interest will be all but wiped out!
My advice (and I will tell everyone til I'm blue in the face)- buy some gold- the ONLY thing that will hold and increase in value over the next few years. Check out Peter Schiff on youtube- he ain't been wrong yet, and things are going to get a lot worse this year...

Central banks are hiding behind the deflation theory maybe, except the ECB anyway. If and when inflation takes off interest rates will rise to fight it. If and when this happens is anyones guess.

Lol_UK_2

neil324 wrote: »

Central banks are hiding behind the deflation theory maybe, except the ECB anyway. If and when inflation takes off interest rates will rise to fight it. If and when this happens is anyones guess.

...and our money in the banks will still decrease in value until the pound/euro and dollar collapse. Look- I'm tired of hearing all this 'rescue package' nonsense.
We are approaching a total deficit in this country that is the same as (and WILL BE ) larger than our GDP...so, technically bankrupt then... It is not a matter of if. It is a matter of when.

G_M

Honestly, anything in the banks is going to be in danger over the next year...only because when we hit big inflation, any gains in interest will be all but wiped out!
My advice (and I will tell everyone til I'm blue in the face)- buy some gold- the ONLY thing that will hold and increase in value over the next few years. Check out Peter Schiff on youtube- he ain't been wrong yet, and things are going to get a lot worse this year...

This is really irresponsible here. The OP was clearly looking for a savings / cash ISA option and is not an approptiate person to be pushing gold too. Gold may/may not go up/down. It may be appropriate as part of a portfolio for a risk-taker. The OP did not say anything to indicate his/her dad is such a person.

Oh - ps Chelleybelley. If your dad DOES decide to switch to another ISA, do NOT close the 1st one and transfer the money. he'll lose the ISA status. Apply to the new bank who will get the funds transferred.

Lol_UK_2

G_M wrote: »

This is really irresponsible here. The OP was clearly looking for a savings / cash ISA option and is not an approptiate person to be pushing gold too. Gold may/may not go up/down. It may be appropriate as part of a portfolio for a risk-taker. The OP did not say anything to indicate his/her dad is such a person.

Oh - ps Chelleybelley. If your dad DOES decide to switch to another ISA, do NOT close the 1st one and transfer the money. he'll lose the ISA status. Apply to the new bank who will get the funds transferred.

I do hope you don't mean that- if so, you really need to get a little more informed about how this downturn is going!- Pump 300 billion pounds into the monetary system ( quantative easing= printing money) and you have instant devaluation of currency/savings...it really is basic economics! Invest 5-10k in gold and you have a rock solid hedge against inflation. Look at the prices now...do your research- I've bought some for my Mum, and we are already up 20% in 3 months!

Lol_UK_2

http://www.youtube.com/watch?v=Z-Id1_BlkME

I urge you to listen to this guy (who predicted the crash back in 2006)...what he has predicted for the US is exactly what is happening in the UK- maybe worse...