unemployed full-time mum - would appreciate advice on 30k savings?

edward4

thanks for your replies people.... you've been very helpful....

Lokolo

I think Lloyds are stopping the vantage account though...

As for tax, it's only a joint tax issue if the money is in a joint account. If it's in the persons name only, then its all down to their tax liability.

If they are not a tax payer than they can fill in an R85 and get interest without tax taken off: http://www.hmrc.gov.uk/forms/r85.pdf

opinions4u

Vantage rate is reportedly going to drop to 3%, so that may not be the solution, or worth the bother.

For ease, you could look at the best easy access account her main bank offers (e.g. Lloyds TSB pay 2.5% on eSavings, Halifax 2.8%-3.0% on Web Saver Reward). Alternatively, the likes of ING, Tesco, The AA, Saga, Birmingham Midshires, The Post Office tend to be paying just shy of 3.0% and I think West Bromwich Building Society are just above.

www.moneyfacts.co.uk can help identify other top paying accounts.

Tax status is, broadly speaking, based on her individual income - not joint income.

If she's a non-taxpayer, remember to register for gross interest on all her accounts.

If she's a taxpayer, get a cash ISA open before 5th April and top it up on 6th April. That's £10,440 sorted!

CLAPTON

women's lib struck a long time ago

married people are taxed the same way as single people

she can receive 7475 per annum tax free in the tax year 2011-12

with (only ) £30,000 this would mean that she would need to earn an interest rate 24.9% AER before she paid tax ... most unlikely

she can register to receive interest tax free (form R85)

level200

Unemployed? Are you claiming benefits with 30K in savings??

pompeyfaith

level that is none of our business as it was not part of the question

blinko

but to be honest with inflation at 4-5% is a savings account really the best thing to do with 30k