Investment/Savings advise for £thousands needed unemployed status

bery_451

Hi,


I am currently on income based benefits. I have below £6000 in total in my 2 normal bank current accounts just sitting there.


I like to make the most of the money instead of it just sitting there.


Any advise on how to make the most of it short term or long term that wont affect my benefits?


Thanks,

atush

Get the highest interest rate, so look to current accts.

Consider your job prospects and any training etc that you need to do to secure employment.

bery_451

Those current accounts I need to pay in my monthly salary to get the interest rate right?


The problem is I don't have a monthly salary.


Now what shall I do?

steelbru

No, you don't have to pay in a salary, you just have to pay in whatever amount they say. You can then take it straight back out again.

So for example set up a TSB account with £2,000 then set up a standing order from your existing account to pay in £500, then another SO from the TSB account to pay £500 back to where it came from on the same day.

jimjames

bery_451 wrote: »

Those current accounts I need to pay in my monthly salary to get the interest rate right?


The problem is I don't have a monthly salary.


Now what shall I do?

Which account says you need to pay in a monthly salary? Read the account conditions not MSE interpretation of them.

bery_451

Does the monthly £500 pay in has to be in one deposit or can the £500 spread between smaller deposits throughout the month?


Also is the £500 has to be from the employer or from anything for e.g. benefits?

bery_451

Sorry for this newbie question but lets say a bank offers 3% interest. Does that mean I get 3% interest per month or is it 3% for year divide by 12?


What about savings accounts? Will this type of account affect my benefit?

Archi_Bald

Interest is generally expressed as AER - Annual Equivalent Rate. So if someone refers to a 3% account they mean the account pays 3% AER.

Interest is taxable income. Whether it affects your benefits depends on how much interest you get and what your savings limit for the benefit(s) is.

bery_451

What are the savings limit for a single person on income based benefits?


Does this savings has to be in a saving account or will DWP ignore it if it is in a current account?

atush

Why not ask this on t he benefits forum?

bery_451

Ok I create a thread there and will come back here with an answer.