Saving sisters money in my offset.

adele9365

Hi.

My sister and I recently inherited £15,000 each. She would like me to look after her money for her. I guess I'm the more sensible one!

I thought I might put the money into my mortgage off-set account. Where I would be saving the equivalent of 3.45% and in turn I could perhaps offer my sister a rate of 2% on her money. She can have access to her money any time and it means neither of us have to hunt around year on year for the best savings rate. Plus I get a little saving out of it too.

I'm just wondering if you good people of moneysavingexpert had any thoughts? Good idea/bad idea? Why this might/might not work?

notanewuser

adele9365 wrote: »

Hi.

My sister and I recently inherited £15,000 each. She would like me to look after her money for her. I guess I'm the more sensible one!

I thought I might put the money into my mortgage off-set account. Where I would be saving the equivalent of 3.45% and in turn I could perhaps offer my sister a rate of 2% on her money. She can have access to her money any time and it means neither of us have to hunt around year on year for the best savings rate. Plus I get a little saving out of it too.

I'm just wondering if you good people of moneysavingexpert had any thoughts? Good idea/bad idea? Why this might/might not work?

Legally it becomes your money when it's put into your name. If you spend it all she has no comeback. Your sister needs to be aware of that. (I have done the same with someone else's money without any problems.)

mgdavid

adele9365 wrote: »

Hi.
My sister and I recently inherited £15,000 each. She would like me to look after her money for her. I guess I'm the more sensible one!
I thought I might put the money into my mortgage off-set account. Where I would be saving the equivalent of 3.45% and in turn I could perhaps offer my sister a rate of 2% on her money. ......

you'd make money out of your own sister? Disgraceful in my book!

kangoora

mgdavid wrote: »

you'd make money out of your own sister? Disgraceful in my book!

Seconded, plus she could get a lot better than 2% on that amount anyway by using various high rate current accounts. She could get 3% (before tax) very easily just by throwing is all into a Santander 123 account along with a regular payment and setting up a couple of DDs.

pip895

Give her the 3 % she could get in a Santander current account or suggest she opens one herself. You could always hold on to the cards and account details for her if she wanted to reduce her access.

anoncol

Disgusting!

adele9365

Okay I apologise if I've offended anyone. She's just not interested in setting up new accounts, DD's, regular payments or otherwise. If it were left to her she would leave it in a low interest easy access account.

I will try and convince her otherwise.

pip895

anoncol wrote: »

Disgusting!

I think that is a bit over the top actually


The OP may not be familiar with the Santander account or indeed he sister may have circumstances that make such an account impossible - we don't know. If in doubt keep it friendly.

If the sister went into a high street branch and put the cash on deposit, the rate she got would really be disgusting.

ViolaLass

Why not give her the full amount of interest? It wouldn't cost you anything.

want_to_save

alternatively she can put the full £15,000 in a cash isa and its her money and not yours

pip895

Cross posted with the OP's post


As an addendum - In the past I have lent money to my sister - The rate is set such that we both make/save money - she wouldn't have had it any other way - and its not disgusting at all, so long as its all in the open.