Off Sick and No Benefits

PoorAndPoorly

Hello Money Saving Experts, I'm wondering if you can help me.

I have been in full time employment for 1 year but am off sick due to a long term illness and I have exhausted my Employer Sick Pay and Statutory Sick Pay. My job has been left open for if/when I am able to return, however I am not sure how long I will be off work for. I have looked into which benefits I am entitled to but have discovered that I am not entitled to any due to the amount of savings that I have.

I have approximately £40,000 in savings accounts and owe approximately £20,000 in student debt.

I am living at home with a parent and I am having to pay council tax, I would like to pay towards rent and food bills however this is not possible with no income.

Does anybody have any ideas how I can invest my savings to provide an income to live off for the foreseeable future? I would not like to invest my savings in risky investments.

Thank you

Archi_Bald

Investing is for 5 years upwards - is this what you have in mind?

If you were to stick with cash, you could get between 3 and 6% AER if you spread your £40K acorss current and regular savings accounts (lots and lots of info about these on the forum).

If you did get 3% AER net, you would have £100 in interest a month. If this is insufficient for your needs, you'd have to start using your capital.

JohnRo

What interest rate are you paying on the student loan (if that's what the debt is)?

PoorAndPoorly

Thank you Archi and John.

I didn't really have an idea about how long to invest my cash for, however I could do with some income now rather than in 5 years. I hadn't realised I could get £100 a month interest from spreading my cash across accounts.

John: I am paying 0.9% interest on my student loan currently.

polymaff

INEB, depending on how chronic and how disabling your medical condition is, might it not be worth investigating if your parent can claim some form of carer's benefit? You might be able to get the loan written off, too.

JohnRo

The loan is a none issue then, realistically you'd be looking at a return overall of between 3 and 4 % on cash savings.

If you haven't already, take a look at this webpage

http://www.bankaccountsavings.co.uk/

drag the wheel to £40K and see what's available.

polymaff

JohnRo wrote: »

The loan is a none issue then, ...

I suppose it could be an issue if running down his capital would enable benefits.

JohnRo

Yes, it wasn't the best choice of words. That said the welfare state's days are numbered and I personally wouldn't wilfully enter a benefits trap or be making any long term financial plans that relied heavily on state handouts.

carter91

polymaff wrote: »

INEB, depending on how chronic and how disabling your medical condition is, might it not be worth investigating if your parent can claim some form of carer's benefit? .

One benefit that might be available to you is PIP (personal independence payment). This is for people who need help with personal care needs and is points based - the Benefits and Work website has some useful info, as would the CAB advice guide.

If you are awarded this benefit (not means tested or taxed), your parent may be then able to claim Carer's Allowance (if they earn less than c.£105 pw). Again, more info on the CAB advice guide.

As to your savings, as others have noted high interest current accounts would seem the way to go. TSB 5% (to £2k), Lloyds 4% (to £5k), Santander 3% (to £20k), Tesco 3% (to £3k). Also look at the associated regular savings accounts with TSB (5%), and LLoyds (4%). Details in MSE Banking & Saving.

Mojisola

polymaff wrote: »

I suppose it could be an issue if running down his capital would enable benefits.

Paying back the loan when it isn't necessary would be deprivation of capital.

PoorAndPoorly

Thank you all for your help.

I will certainly look into the various current and savings accounts and try to decide which ones will produce the most income.

I've previously had a look at the PIP and I don't think I am able to claim from that benefit.

We were wondering about investing in property and if that would be a good way to go, but not sure what to do.