Savinga v Benefits

msaquib

Hi,

My sister is a housewife and she is currently getting Child Benefit, Child Tax Credit and my sisters husband is getting Working Tax Credit.

I am thinking to open a Savings account in by sisters name. My question is:-

• How much can she can invest without effecting any of her benefits?
  
  As she is not working the savings will get interest without Tax deductions.
  
  Thanks
  SM

Market_Oracle

None of the benefits you have stated have a capital cap, though interest on savings would count towards the WTC assessment, though usually yuo have to earn a lot of interest to make any significant difference to the WTC payments, i.e. 1k or more a year, which at 5% implies a £20k investment.

You need to go to the tax credits site and use their calculator to work out what level of interest will effect his WTC.