Dad has £20k to put aside?

panther

Hi,
My 70 y.o dad has around £20k from a 10 year investment that has just matured. He's not desperate for the money but obviously doesn't want it just stuck in a current account doing nothing so I was wondering what the more knowledgeable thought of this idea? He is a taxpayer but my mum is a non-taxpayer who receives savings gross interest. What I suggest is he stick 3k in a ISA (NS&I currently offering 6.3%) and with the rest put it in my mums A&L Direct Saver currently also offering 6.30% AER.

panther

The only income my mum receives is benefits of DLA and SDA (severe disability allowance) which do not count towards taxable income. When she turned 60 she was offered the choice of either receiving a pension (which counts towards taxable income) or staying on SDA which does not count towards taxable income, so it was beneficial to stay on SDA. The savings interest is the only income received that counts towards her tax allowance so she is well under the personal allowance.

She's happy to stay with A&L for the time being but I think it'll be best if she opens a new account with another bank for my dad to put his money that doesn't penalise withdrawals so my dad can still take advantage of the tax free interest but without the risk of loosing both of them a months interest should any decide they want a withdrawal.