Best return on £3200 for an non tax payer please

hotkee

If he owes you £2k then he should pay you that - first thing. So he has £1200 and you have £2k.

You could both stick your pots of money into the barclays ISA for 12 months paying 3.55% (tax free).

And in 12 months he will have 1242.60 and hopefully job or something.

And you will have £2071.

And if he wants to borrow more money from you - it will at least mean he has less debit going forward.

PS - If he is non tax payer - stick the whole lot £3200 into west brom bs ebond for 12 months - earn 4.3% gross. At end of the 12 months he will have £3337 and he can pay you back £2000 plus interest.

booklover

hotkee thanks a lot for that very detailed clae advice

Take care

Fiona

hotkee

Fiona

I did make a mistake suggesting West Brom ebond - the limit to open an account is 5k.

West Brom would offer 4.3% if you put in a minimum of 5k.

As you (or your son) have less - consider the ICICI bond for 1 year and that pays 4%.

The only advantage of the ISA route is going forward after 1st year, it will remain tax free (if money stays in the ISA) while your son might become eligible to pay tax but ISA never is always tax free.

rb10

hotkee wrote: »

You could both stick your pots of money into the barclays ISA for 12 months paying 3.55% (tax free).

And in 12 months he will have 1242.60 and hopefully job or something.

And you will have £2071.

No, this is a variable rate account, so the rate is unlikely to stay the same for the year (which is what the figures above are based on). You can get about 3%, or a little higher, on fixed rate ISAs, or take a gamble on the variable one paying off ... it depends what happens to rates.

Reaper

Wherever you put it be sure to ask them to pay the interest to your son without tax deducted until he becomes a tax payer. You will need to fill in an extra form called R85 which they will provide.