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Lloyds/TSB monthly saver...offered son mini cash ISA instead?
BoC163
Posts: 113 Forumite
New to this part of the forum but wondered if anyone can advise?
My 18 year old son went to apply for a Monthly Saver account at Lloyds /TSB today but they persuaded him a mini cash ISA would be better.
He does not have a regular income and is in final year of A level study.He also hasn't got any savings at present but recently from his grandmothers estate he has £3500 which we would like to match over the next few years to support him in university. My thinking was to deposit £500 into the monthly saver then £250 a month thereafter. My understanding this would return 8% for a fixed period, whereas the mini ISA would only return 5.5%. He does not pay tax, so which is the right advice?
All help appreciated!
*edit* Just realised that the monthly savers is just that...monthly, so wouldn't get the full 12 months interest from the start, so first stop I guess would be £3000 in a cash ISA then 'our' contributions could be into the monthly saver account?
My 18 year old son went to apply for a Monthly Saver account at Lloyds /TSB today but they persuaded him a mini cash ISA would be better.
He does not have a regular income and is in final year of A level study.He also hasn't got any savings at present but recently from his grandmothers estate he has £3500 which we would like to match over the next few years to support him in university. My thinking was to deposit £500 into the monthly saver then £250 a month thereafter. My understanding this would return 8% for a fixed period, whereas the mini ISA would only return 5.5%. He does not pay tax, so which is the right advice?
All help appreciated!
*edit* Just realised that the monthly savers is just that...monthly, so wouldn't get the full 12 months interest from the start, so first stop I guess would be £3000 in a cash ISA then 'our' contributions could be into the monthly saver account?
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Comments
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i have to shoot off in a minute, but mt quick advice would be to use the ISA allowance first as i presume, though he is not a tax payer now, he will be one day, therefore, an ISA will allow him life-long tax free money...Round Figures OCD Club!
march 2010 end: 111k mortgage, 6k savings
Feburary 2010 end: 111k mortgage, 6k savings
October 2009 end: 112k mortgage, 9k savings
September 2009 end: 113k mortgage, 8k savings0
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