Complecated Savings!

mk1mini

Hi all,

Me and my brother have bought a flat together. I have put in approximately £99,000 and my brother has put in approximately £80,000. Now from this flat purchase we have £2,000 left over which we want to invest in a savings account, either in a joint name or in my name.

We also have a lodger moving in which will be paying in £300pcm. 100% of this we want to save so that it can be divided up appropriately at the end.

And finally I wish to save £100-150pcm of my own cash into a savings accound (for holidays / cars / whatever!).

Another point is my brother has already used his ISA allowance, and I havent used mine at all.

So to recap:

£2,000 cash to me and my brother at 99:80 ratio
£300pcm to me and my brother at 99:80 ratio
£100-150pcm for me to save.

All to be saved in my name, or the top two in me and my brothers name.

Any assistance would be great! thanks in advance.

Darth_Calculus

This is what I would do:

1) £2000

This is a one off amount, so I would simply split it between you and your bro. I think this is the least complicated way of doing things, as otherwise it could get confusing of you have a joint account, that you are paying into / withdrawing / receiving interest, etc.

Split as follows:

99/179 of £2000 = £1106.15
80/179 of £2000 = £ 893.85

I would put your bit in the best paying ISA (of which there is a thread dedicated to this), which for me would be the NS&I Direct ISA (6.3%, instant access, no min deposit).

Your bro can put his £893.85 into whichever account is best for him (you have not gone into detail in terms of when he might need the money, so I cant really suggest an account for him, but if he wants easy access, I have found the Icesave account to be excellent.

2)

In terms of the rent from the lodger, you cant really expect him to pay the rent into two accounts, so I would set up an account (in either name), which the lodget will pay £300 into. I would then arrange for a standing order to take out you and your brothers share of this, with the same split:

99/179 of £300 = £165.92
80/179 of £300 = £134.08

out of this account into your own accounts.

You can then pay this into your ISA, until you reach the £3000 yearly cap.

After you have filled up your ISA, I would then start putting the extra savings into a regular saver, as you get a better rate from these accounts, and you dont have a lump sum to invest.

I think the Yorkshire BS reg saver pays 7.1%, you can pay in between £10 - £500 per month, and can make one withdrawalm per year (for car / holdiay).

If you need more access to your money, then again, I would recommend the Icesave account.

3) £100 - £150

See above really. Fill up ISA first. Then put into Yorks BS, if you dont want to touch it for the time being, or Icesave if you need access to it.

Thats how I would play it, anyway!