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savings advise pls!

We have a relative who is really bad with money. They have recently come into some inheritance and paid debts off, but have an amount remaining, £6,000.

They will need this in a savings account, and because of the past problems have asked my DH to either have the account in his name, or be a signatory (sp?) on the account so they cant blow it.

It will need to be accessable as they may need the funds for living expenses, hopefully with a decent interest rate. We've had a look around and only decent accounts are ISA's, but i preume they can only be in one name? And i dont know the implications of DH having it in his name when its not his money!

Comments

  • donniej
    donniej Posts: 104 Forumite
    And i dont know the implications of DH having it in his name when its not his money!
    Well, for one he won't be able to use his ISA allowance for that tax year. Also, the tax-free amount is £5,340 for cash ISAs for this year if I'm not mistaken (i.e. just under £6,000)
  • Gromitt
    Gromitt Posts: 5,063 Forumite
    If you want instant access, then you'll be looking at around 3.1% AER.

    If you can lock the money away, then 3.6 - 4.2% AER (assuming 1 - 2 years)

    You will not get 6K into a new ISA, as the limit is £5340.
  • Mojisola
    Mojisola Posts: 35,562 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Don't put it solely in your DH's name. If you do, it will counted as his money and could affect any benefits you need to apply for. That might not be a problem now but you don't know what's in the future.

    If it goes into a joint account, half of it will be his money.

    Would this work - an online account in your relative's name but using your DH's email address and not telling the relative the password so that money can only be taken out through your DH?
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
    Part of the Furniture 500 Posts
    Thanks guys, given us some things to think about. Could we put the money in an ISA in relatives name and DH be a signatory?
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
    Part of the Furniture 500 Posts
    And yes Mojisola that could be a good idea. We were thinking of putting the money in DH name and just finding the relative the money they require from our own funds, as and when needed, so we could lock it in a high interest account.
  • ses6jwg
    ses6jwg Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    if they lack discipline then it might be advisable to go for a fixed term product that they cannot access unless on death until the end of the term, rather than with a penalty
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
    Part of the Furniture 500 Posts
    thanks for the suggestion ses but they are on a low income (but is working) so the money maybe needed for living expenses.

    We are not limiting the amount they withdraw, more of a deterrant for spending it on drink and loose women!
  • Mojisola
    Mojisola Posts: 35,562 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Brodiebobs wrote: »
    more of a deterrant for spending it on drink and loose women!

    Spoilsports! (Only joking;))
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