Wanted - High Interest Account

KB38

An elderly relative has just sold her house and moved to sheltered accommodation. She has around £100,000 that she would like to put into a bank account - preferably with high interest earning potential. She doesn't need access to it on a regular basis. Any suggestions would be gratefully received.
Thanks

Steve_xx

ING Direct pay 5% on just £1. Also the interest is credited monthly to the account. Here is a link:
http://www.ingdirect.co.uk/html/aboutsavings/interestrates.html

Alliance & Leicester pay 5.35%, but there is a limit of £25,000 in the account. Here's the link:
http://www.alliance-leicester.co.uk/savings/index.asp?page=home&ct=flashsecondaryonlinesaverearn535percentbestbuyl

Halifax Regular Saver pays 7.07% but there's a limit to how much you can put in and it has to be put in on a monthly basis. Here's a link
http://www.halifax.co.uk/savings/regularsaver.shtml

Don't foget that she can invest £3000 in a cash ISA which would be free from tax. Here's a link to a page showing rates for these accounts:
http://www.thisismoney.co.uk/saving-and-banking/best-savings-rate/article.html?in_article_id=394169&in_page_id=50

Edinburghlass_2

I am going to copy this thread across to Savings and Investments for further suggestions

Diane_2

There's a good one from Northern Rock for Silver Savers. Might be worth checking out.
Diane

grumbler

KB38 wrote:

...a bank account - preferably with high interest earning potential. She doesn't need access to it on a regular basis

This THREAD from Savings & Investments board can help to find a place for money left after putting £25K to A&L.

SomeOne_2

Steve_xx wrote:

Don't foget that she can invest £3000 in a cash ISA which would be free from tax. Here's a link to a page showing rates for these accounts:
http://www.thisismoney.co.uk/saving...9&in_page_id=50

Err her being an elderly lady who is probably retired won't need to worry about having an ISA.

Kazza242

Some of the accounts above offer highly competitive interest rates, but they may not be suitable for some some elderly folk, who may find an internet/phone account unsuitable.

Two new accounts have been launched aimed specifically at the mature saver, who may prefer a branch-based passbook account.

Yorkshire Building Society is offering a new passbook account to mature people. People who agree to have their pension – private or State – paid into the new Access Saver for Pensioners account will be able to withdraw cash using a passbook, which the elderly may find easier to handle than new electronic payment systems, which require them to remember a Pin number. Details from YBS branches or call 0845 1200 100.

It pays 3.65% (gross) interest. Customers are allowed to make four withdrawals a month and must maintain a minimum balance of £50. The account is also open to anyone in receipt of invalidity benefit.

Once the account has been opened, customers can use Britannia Building Society's 190 branches as well as the 220 YBS branches and agencies to access cash. Here's a link to the Yorkshire Building Society Access Saver for Pensioners account.

West Bromwich Building Society have launched an account aimed at the over-60's. The Oak Account pays 4.25% interest before tax on sums between £10 and £100,000, tracking the Bank of England's base rate, minus 0.5%. Customers are given a passbook and will be able to make unlimited withdrawals. To qualify, customers must have either their State or private pension paid into the account.

**However, to open this account, customers will need to see a West Bromwich retirement planning adviser. Here's a link to the West Bromwich Oak Account page.

Err her being an elderly lady who is probably retired won't need to worry about having an ISA.

I'm don't agree with you on that. Being elderly does not mean that a saver will not have to pay tax on their savings interest. An elderly person also receives a personal allowance for the tax year, if their income (from pensions, investments, savings etc.) exceeds their personal allowance for the year, then the interest on their savings will be subject to tax like everyone else. The amount of tax deducted depends on their income for the year. Therefore, a mini cash ISA can still be a good idea for an elderly person. In fact today's Telegraph newspaper 'Your Money' section features a 78 year-old who plans to shield some of his money from the taxman by depositing £3,000 into a mini cash isa this week, as he is subject to tax on his income because it exceeds his personal allowance for the year.

Paul_Varjak

SomeOne wrote:

Err her being an elderly lady who is probably retired won't need to worry about having an ISA.

If the lady invested £100,000 at 5% that is £5,000/year interest. That alone takes her above the tax threshold for a single person and make her liable for tax.

And as her pension will also be liable to tax there is a fair chance she will still be above the tax threshold even if she qualifies for Age Allowance.

I know plently of eldrely people who qualify for Age Allowance and pay tax, even though they made full use of their PEP/TESSA/ISA allowances!

Richard_Beck44

KB38 wrote:

An elderly relative has just sold her house and moved to sheltered accommodation. She has around £100,000 that she would like to put into a bank account - preferably with high interest earning potential. She doesn't need access to it on a regular basis. Any suggestions would be gratefully received.
Thanks

:beer: The coventry building society have an account for people over 60 that pays 6% for a year. They have a web site

Steve_xx

HSBC have a Regular Savings account paying 8% per annum. Looks good, but limited to deposits of upto £250 per month and it seems that you have to feed it from one of their own current accounts.

Here's a link: http://www.hsbc.co.uk/1/2/personal/savings-investments/savings/regular-saver

klondyke

Richard_Beck44 wrote:

: The coventry building society have an account for people over 60 that pays 6% for a year. They have a web site

You can only put max £2000 per month into that.