Account in son's name

Poppy9

milleniumaire wrote: »

S I understand that, however, he may be 19 and at university, but we still have full control over his finances and he requires financial support from us, so he's not about to run off with a "small" amount of savings.
.

He is an adult so you should not have full control over his finances. I have a 20 year DD in uni and we are her sole source of income. She has substantial savings as we gave her lump sum at 18 and have told her that it's her money but it's a one off so when it's gone it's gone.

She has to decide whether to spend or save it. I'm sure she would talk it through with us but it's her money and she's an adult.

Aside from that she has student loan and a monthly allowance from us. I've always took a lead in "training" her in managing a bank account and using a debit card since she was about 12 and let her make mistakes but she's never gone overdrawn.

We have a BTL and give her money from this income every month as her allowance. We ensure we have enough from it to pay any bills related to BTL but the money we give her is hers to do with as she wants.

We fully declare the income via Self Assessment as we are the owners of the house so it's our taxable income. We max out our ISAs to get our savings tax free.

colsten

Poppy9 wrote: »

We max out our ISAs to get our savings tax free.

Everything you said up to that made a lot of sense but saving in an ISA so you can avoid tax may not make much sense. Have you maxed all the interest paying current accounts?

Poppy9

colsten wrote: »

Everything you said up to that made a lot of sense but saving in an ISA so you can avoid tax may not make much sense. Have you maxed all the interest paying current accounts?

yes we have those too and from Martin Lewis's show last week he said to remember that with ISAs you have a £15k allowance each year so you can get more tax free income than only using high interest bank accounts. Of course it depends how much savings you have plus, what interests rates are going to do in future and if Govt. changes savings rule. So I'm not ditching my ISAs yet but I actively manage my savings.

bigadaj

Poppy9 wrote: »

yes we have those too and from Martin Lewis's show last week he said to remember that with ISAs you have a £15k allowance each year so you can get more tax free income than only using high interest bank accounts. Of course it depends how much savings you have plus, what interests rates are going to do in future and if Govt. changes savings rule. So I'm not ditching my ISAs yet but I actively manage my savings.

If you've maxed out the high interest accounts then you have a six figure cash sum. Using the jsa makes sense if you have investments, but not in cash in the long term, it's unclear what you have the mines in but it sounds like cash which isn't the ideal strategy for most people unless you are very risk averse, which the presence of a buy to let seems to indicate isn't the case.

jimjames

Poppy9 wrote: »

yes we have those too and from Martin Lewis's show last week he said to remember that with ISAs you have a £15k allowance each year so you can get more tax free income than only using high interest bank accounts. Of course it depends how much savings you have plus, what interests rates are going to do in future and if Govt. changes savings rule. So I'm not ditching my ISAs yet but I actively manage my savings.

I still find it bizarre that Martin is ramping cash ISAs when for most people with average savings they are completely pointless even more so after April. He'd be far better saying don't use ISAs unless you have over £50k.

YorkshireBoy

jimjames wrote: »

I still find it bizarre that Martin is ramping cash ISAs when for most people with average savings they are completely pointless even more so after April. He'd be far better saying don't use ISAs unless you have over £50k.

That's what he (sort of) did say though, when he demonstrated his 'savings fountain' on his TV show.

But, when telling people with that kind of cash holding they could make more money, we have to remember that not everyone wants to operate with 9 sole current accounts!

Poppy9

bigadaj wrote: »

If you've maxed out the high interest accounts then you have a six figure cash sum. Using the jsa makes sense if you have investments, but not in cash in the long term, it's unclear what you have the mines in but it sounds like cash which isn't the ideal strategy for most people unless you are very risk averse, which the presence of a buy to let seems to indicate isn't the case.

OH retired, inheritance etc. We were considering more BTL but now thinking of just buying DD a house (or a sizeable deposit) as she might as well have her inheritance now.

I used to have shares etc. but took them out in 2009 as they were our investment to repay our endowment mortgage which was under performing.