Best return on £3200 for an non tax payer please

booklover

Hello

My son has just received some money for an accident (hes now 18) and not in f/t ed or working atm.

He will put it away and not touch it for some month, i hope!

I am so confused where to advise him to deposit it,...

He owes us £2k

Fiona

pbw

if you don't want him to touch it, get him to put it in a 4 year fixed rate isa with halifax paying 4.00%.

£3200 will be £3743.55 in 4 years time!

k8r4u

pbw wrote: »

if you don't want him to touch it, get him to put it in a 4 year fixed rate isa with halifax paying 4.00%.

£3200 will be £3743.55 in 4 years time!

He's 18 ?? Get the 2k off him quick :D

Leighthal

k8r4u wrote: »

He's 18 ?? Get the 2k off him quick :D

Agreed! How does he manage to have 2K of debt(even if its only to you) at 18?.He needs to learn to pay his debts(even if you don't use the money yourselves you could put it aside for him in a secret account, maybe)

withnell

As you can get 4% fixed for one year this is probably a better bet than 4 years - He might need the money for a flat deposit or similar in a year or so!

booklover

Leighthal wrote: »

Agreed! How does he manage to have 2K of debt(even if its only to you) at 18?.He needs to learn to pay his debts(even if you don't use the money yourselves you could put it aside for him in a secret account, maybe)

Well, over the last couple of years we ( mostly me) have been lending him a lot of money. Eg. we bought him a good Nikon camera approx £700 and a lens £500 as he is very interested in a pursuing a career in photography.

I also bought him a lot extra things on holiday in Florida (1.5 years ago) and on our trip last month to New York.

I have been too generous, and know i have given him too much at times, but have felt sorry for him because he has a debilitating health condition..

So he has always promised me that he will pay us back this money when he is 18!

I would of course like him to save it; I worry that he has expensive tastes and could end up spending it all quickly and getting in serious debt! :mad:


Fiona


Ps thanks so much to you all for your great advice; its much appreciated.. :A

Reaper

If he promised to pay you back when he was 18 and now he is 18 and has the cash to do it then you should make sure he does. Paying your debts is one of those painful lessons in life a child needs to learn. You'll do him no favours if you let him off.

As for the rest of the money I agree a 1 year fixed bond has the benefit of preventing it being spent because it is too easily to hand while not locking it up so long that he can't get at it. Maybe better still would be a 3 month notice account.

Compare accounts at a site like this: http://www.moneysupermarket.com/savings/

k8r4u

It's not this guy is it ? :D

http://forums.moneysavingexpert.com/showthread.html?t=1705335

booklover

thanks reaper, great advice!

lol no k6r4u no its not him.. :rotfl:

chirpchirp

K8 - we think alike. I also thought it might have been him after reading the initial post.

booklover

look any serious answers please


many thanks

Fiona