Old people's savings

Chriskim

I have just realised that as I only have a state pension of £6500 and do not pay tax, I don't need ISAs and could use the old people's bond at 4%. I have £30,000 which is just maturing in a one year fixed rate ISA so am I right in thinking I should put it into the old person's bond? If they withdraw this, it would only take two years to put the money back into ISAs?
Could you advise me how to find the old people's bond online please?

Fruit_and_Nut_Case

Chriskim wrote: »

Could you advise me how to find the old people's bond online please?

http://www.nsandi.com/65-guaranteed-growth-bonds

McKneff

As far as I am aware the limit for a single bond is £10.000 or a joint one at £20,000

xylophone

Are you 65 or over? If not, the bonds are not open to you.

If 65 or over, you can deposit up to £10,000 in the one year bond and up to £10000 in the three year bond.

At the moment, the interest is paid net but according to a contributor on Money box this morning, will be paid gross after 6 4 16 (although this would need checking).

If you made your deposits now, as interest is credited on the anniversary of opening, you would have to reclaim the overpaid tax.

You have £30,000 so you need to find a home for the remaining £10000 - if you are able to open current accounts, you have the potential for higher returns than on Cash ISAs.

https://forums.moneysavingexpert.com/discussion/comment/67987327#Comment_67987327 post 2.

Chriskim

Yes I am over 65. I have checked on the higher rate ISAs attached to current accounts but they all require more than the £640 per month of my income.
Thanks for the link to the website.

colsten

Chriskim wrote: »

Yes I am over 65. I have checked on the higher rate ISAs attached to current accounts but they all require more than the £640 per month of my income.
Thanks for the link to the website.

Not sure where the £640 come from but if you are referring to the minimum monthly deposits some accounts require: you can transfer the money in and take it out again immediately (or take it out and put it back in immediately). The same money can service all your accounts. Lots of people do this.

jimjames

Chriskim wrote: »

Yes I am over 65. I have checked on the higher rate ISAs attached to current accounts but they all require more than the £640 per month of my income.
Thanks for the link to the website.

I'm not sure if you've misunderstood the link.

These aren't ISAs they are current accounts that pay up 5% interest. They are taxed but so are the nsi accounts.

kidmugsy

£10k at ns&i and £20k at this might suit well
http://www.santander.co.uk/uk/current-accounts/123-current-account

Be sure to complete an R85 form for the latter.

Chriskim

colsten wrote: »

Not sure where the £640 come from but if you are referring to the minimum monthly deposits some accounts require: you can transfer the money in and take it out again immediately (or take it out and put it back in immediately). The same money can service all your accounts. Lots of people do this.

The £640 per month is my state pension income. (Sorry I miscalculated the annual figure - it's more like £8,000). The current accounts with high interest need more than that to be deposited monthly, as I understand it. I will consider putting a sum of money in each month and taking it out again.

Thank you again for all the help. It really has enabled me to get my head around pensioners' bonds.

bowlhead99

Chriskim wrote: »

The current accounts with high interest need more than that to be deposited monthly, as I understand it. I will consider putting a sum of money in each month and taking it out again.

That's what everyone else is doing. If you have £30,000 of cold hard cash you can't possibly have a problem finding £500 or £1000 or whatever the minimum is, to move into an account by standing order to meet a minimum deposit requirement. Because £30,000 is more than £1000.