Savings account

imported_jac

Hi

My sister has asked me to help her to choose a savings account for £16,000 that she has inherited. She needs instant access and she wants to put the interest she earns into a current account. She is 69 years old and I wondered if the nationwide account for over 60's would be OK for her and then their flexiaccount as her current account. She is with the Halifax at the moment.

Thanks
Jackie

doitmyself

imported_jac wrote: »

Hi

My sister has asked me to help her to choose a savings account for £16,000 that she has inherited. She needs instant access and she wants to put the interest she earns into a current account. She is 69 years old and I wondered if the nationwide account for over 60's would be OK for her and then their flexiaccount as her current account. She is with the Halifax at the moment.

Thanks
Jackie

Hi Jackie
I guess the Nationwide a/c and many others would be fine, I don't now anything about it.
One to consider would certainly be the A&L Direct Saver currently paying 5.8% AER. This operates in conjunction with a 'linked' a/c, on a Direct Debit basis, her Halifax current a/c would be the linked account in this case and so no need to change.
The account provides instant access, though with penalty for making withdrawals, - i.e. no interest is earned during the month in which any withdrawal is made, and interest is paid monthly and either credited to the A&L a/c or paid into the lnked a/c. (this is why you need the d/d).

Other considerations for your sister may be to ensure she receives gross interest if she is not a tax payer (form IR85), and to also be mindful of the £16k savings limit which may impact any benefit, such as Council Tax benefit she may be recieving. (I'm not expert on this, someone else can prob be more specific).

Robert_Sterling

It seems unlikely that she need instant access to all of the money.
With instant access she can get 5.75% at present from HSBC
Some could go into Leeds one year fixed rate account at 6%
Perhaps all in the HSBC would be less hassle.
However keep an eye on the 5.75%.
It is a good rate and might at some time be reduced.

Consider £3000 in a mini cash ISA before April 5th
Consider another £3000 in a mini cash ISA afer April 6th