Dro & isa

Crisp_£_note

I have a DRO which was spent last month. During this time a family member passed away and I was left some money. I would like to put this money in an ISA in the next couple of days before I lose the chance (as it has to be done by 5th April).

Is this dodgy ground or is it acceptable to do this now?

Its not a lot of money but I dont want to run the risk of having it hanging around the house and frittering it away. I need to start saving for when I get older as I have no pension etc as have been out of work due to longterm sickness for some years now. It would also bring me peace of mind knowing I had it there as an emergency fund should I need it to bridge a financial gap.

If I dont make it for an ISA can I put it in a savings account and if so who would accept me with a DRO?

Thanks in advance.

wba31

So can I clarify, your DRO is in place? or you are in the process of applying?

How much have you received as inheritance? you can only have upto £300 during your moratorium period, so if it is any more than this there may be issues depending on where you are in the process.

Prior to the DRO - you may use some of the money for ESSENTIAL expenditure, for example if your washing machine is on the brink, and you can take your £90 fee from it.

During the DRO - if less than £300 then it isn't a problem, if more you are under obligation to report it to the DRO Unit. The DRO may then be revoked. Failure to report it accordingly means you are then in breach of the DRO, and liable to prosecution if it is found out (that's what it says in the declaration you sign and send back to the DRO Unit).

If your 12 month moratorium has finished, then there are no problems with the amount of money, and it's simply a case of who will offer you an account. try your current bank.

If you are unsure with any of this you probably need to check with your intermediary

Crisp_£_note

My DRO has been served and the 12 months was up last month. I have about £2,200. I have a small debt to clear with a family member who was kind enough to lend me some cash in an emergency shortfall a while ago and hasnt chased me yet as they know my situation and dont want to hassle me but I would feel better to repay them now whilst I can afford to, so I say £2,000 is for the savings or ISA account.

So from what your saying I am ok to go ahead and wont be questioned otr have the DRO revoked as the 12 months is over last month?

Which would be better an instant access ISA or a Savings account for a year?

Thanks for the help, much appreciated.

coinxoperated

I would assume, as you had no knowledge that you were going to get this money, it should not be an issue! If your really nervous, call CCCS - they would be able to give you a definative answer without landing you in it!

Crisp_£_note

Thanks for the help, much apreciated

wba31

Crisp_£_note wrote: »

My DRO has been served and the 12 months was up last month. I have about £2,200. I have a small debt to clear with a family member who was kind enough to lend me some cash in an emergency shortfall a while ago and hasnt chased me yet as they know my situation and dont want to hassle me but I would feel better to repay them now whilst I can afford to, so I say £2,000 is for the savings or ISA account.

So from what your saying I am ok to go ahead and wont be questioned otr have the DRO revoked as the 12 months is over last month?

Which would be better an instant access ISA or a Savings account for a year?

Thanks for the help, much appreciated.

So if your DRO ended last month (say 1 March) and you received notification of the money on or after the 2 March (for our example) it has not effect on your DRO at all.

For the first £5000 or so I believe an instant access ISA would be the best option, you could pay in another £3000 or so and not pay any further tax on interest. make sure you shop around for the highest interest rate!