Can I Protect My Savings While on Benefits?

fredandwilma

mrobsessed wrote: »

Hi All,

I'm facing redundancy in the near future and am looking at making the most of any redundancy payments I receive.

I'm thinking of putting some money into an ISA or a fixed term savings account as an emergency fund. I believe that savings over 6k starts reducing benefit payments which, on a sliding scale, reach zero at 16K. But what precisely counts as 'savings' and can cash be legally put aside in a way that avoids these restrictions?

I've been told that the Benefits agency have the power to check on ANY account as all accounts are linked to an individuals National Insurance Number. Is this true?

What type of account can be checked and is there any type of account that is exempt? How do I protect my money from being counted as spendable savings by the benefits agency? Does the Government allow extra funds in certain situations or is it all classed as savings?

Any advice would be appreciated.
MrO

I think this thread is frankly, distasteful, and not within the boundaries of the type of help the benefits board is meant to promote.

If you are lucky enough to be receiving redundancy pay, this is meant to help support you whilst you look for another job. A sad fact of life, but true, unfortunately.


That's not to say you still aren't entitled to benefits, but i'm sure "deprivation of capital" must leave a bad taste in the mouth, of many of the people who help or need help on this board? and those who struggle to live on benefits, on a daily basis.

At a time when the government is making cutbacks which affect people for whom there is no other " safety net."


I've said my piece.

mrobsessed

fredandwilma wrote: »

I think this thread is frankly, distasteful, and not within the boundaries of the type of help the benefits board is meant to promote.

The 1,300+ people who have been reading this thread since yesterday seemingly disagree and this figure suggests that people are very interested in this topic.

It's entirely speculative and obviously better for myself and others in a similar position to become as fully informed as possible.

I'll let you get back to your Mail on Sunday

fredandwilma

mrobsessed wrote: »

It seems the only option for 'hiding' assets is to stuff a mattress with banknotes or buy another physical commodity that can be exchanged for cash - and keeping something like that in one's house is itself is risky, foolish and impractical - and it seems, also illegal.

Thanks for your help, all.

You'll not even get away with that, and if you don't know why, i'm not going to tell you.


Good look for the future, OP.


I am genuinely sorry about your situation, but you are in a virtually no win situation.

evenasus

HappyMJ wrote: »

You can close fixed term savings account with a penalty which is usually the loss of all interest.

Some accounts you may but most you'll find you can't.

I have several, some 5 year and most do not allow early closure - except on the death of the account holder.

dseventy

mrobsessed wrote: »

The 1,300+ people who have been reading this thread since yesterday seemingly disagree and this figure suggests that people are very interested in this topic.

It's entirely speculative and obviously better for myself and others in a similar position to become as fully informed as possible.

I'll let you get back to your Mail on Sunday

I have read this thread. And been back to see the replies.

I, like many other readers who don't post on the thread see what the OP is trying to as immoral bordering on fraud.

We also hope that people like fredandwilma point this out.

So be "as fully informed" as you like, but don't assume that reading the thread and not posting is somehow in support of claiming state assistance when you can clearly support yourself. (I can use italics for a point too!).

D70

crabyducky

asdf1982 wrote: »

im pretty sure homeless people dont have £16k in the bank. otherwise they'd just rent a flat and they wouldnt eat out of bins

I know of someone who is homeless, and has a very large amount of money in the bank.

fredandwilma

dseventy wrote: »

I have read this thread. And been back to see the replies.

I, like many other readers who don't post on the thread see what the OP is trying to as immoral bordering on fraud.

We also hope that people like fredandwilma point this out.

So be "as fully informed" as you like, but don't assume that reading the thread and not posting is somehow in support of claiming state assistance when you can clearly support yourself. (I can use italics for a point too!).

D70

Like many people who have read this thread, ( and you never know WHO is reading what you post,) i was in two minds whether to post, for fear of being classed "judgemental."


However, i feel it's such an insult to all the genuine benefit claimants out there, many of whom live in poverty. Rightly or wrongly, i decided to post.

Now i have said my piece, and i'll say no more on this topic.

Ravenshade

Then again... it depends on how much savings you have as to how best to protect them from being considered. There are plenty of illegal methods, such as offshore accounts, which often cannot be tracked even with MIDAS. That said you have to be quite...secure about it.

Also illegally, is the Safety Deposit Box method just make sure to insure it. You could purchase gold or platinum bars to condense the amount as much as needed. Though this is probably the wrong time to do so, given that gold and platinum prices are at all time highs.

Possible legal methods as I mentioned before would be to Pension it, you could I dunno purchase all your childrens assets for say...the sum of your savings. Controversially and somewhat riskily there are also Trusts, which if you look into them can be complicated. Whether these methods would be seen as depriving yourself of money I don't know.

Paying off your mortgage does seem like a valid way of...disposing of the cash. Then again...paying off a long forgotten loan to a friend based on a contract of some kind, could also be valid. (I'm just doing this to tick the people who are reading this right off).

I wonder whether you can protect the cash itself however in a legal way? You 'could' purchase a Postal Order...and send it through the postal system, but that's risky and you want to take out insurance on that as well.

Another illegal method would be to purchase bitcoins... and then encrypt the hard drive.

Basically I think you can protect the 'wealth' but I'm pretty sure you can't protect the cash. I mean not so far as legality is concerned.

Hope that spawns some ideas >=D

Edit.
Consider donating the proceeds of any interest on those savings to charity. I can understand why you might want to protect your savings, but bear in mind that you're using a system designed to help those who are most vulnerable and do not have a luxury of having anything else to fall back on such as savings.

C_Mababejive

crabyducky wrote: »

I know of someone who is homeless, and has a very large amount of money in the bank.

So do I. In fact someone is homeless if they have no legal right to reside.

fredandwilma

Ravenshade wrote: »

Then again... it depends on how much savings you have as to how best to protect them from being considered. There are plenty of illegal methods, such as offshore accounts, which often cannot be tracked even with MIDAS. That said you have to be quite...secure about it.

Also illegally, is the Safety Deposit Box method just make sure to insure it. You could purchase gold or platinum bars to condense the amount as much as needed. Though this is probably the wrong time to do so, given that gold and platinum prices are at all time highs.

Possible legal methods as I mentioned before would be to Pension it, you could I dunno purchase all your childrens assets for say...the sum of your savings. Controversially and somewhat riskily there are also Trusts, which if you look into them can be complicated. Whether these methods would be seen as depriving yourself of money I don't know.

Paying off your mortgage does seem like a valid way of...disposing of the cash. Then again...paying off a long forgotten loan to a friend based on a contract of some kind, could also be valid. (I'm just doing this to tick the people who are reading this right off).

I wonder whether you can protect the cash itself however in a legal way? You 'could' purchase a Postal Order...and send it through the postal system, but that's risky and you want to take out insurance on that as well.

Another illegal method would be to purchase bitcoins... and then encrypt the hard drive.

Basically I think you can protect the 'wealth' but I'm pretty sure you can't protect the cash. I mean not so far as legality is concerned.

Hope that spawns some ideas >=D

Edit.
Consider donating the proceeds of any interest on those savings to charity. I can understand why you might want to protect your savings, but bear in mind that you're using a system designed to help those who are most vulnerable and do not have a luxury of having anything else to fall back on such as savings.

What is the title of this thread?

Can I Protect My Savings While on Benefits?

Is this a wind up?

Why are you suggesting illegal methods of committing fraud?

In order to do any of these things, the OP will have to lie, and that, is benefit fraud.