Best Interest Rates For Retired Individual

Primrose

The savings portfolio for a 65 year old would look rather different from 80+year old. A young pensioner of 65 could potentially have up to 25 years worth of viable investment in a stocks and shares iSA. You wouldn t take that route for an 80+ year old and I would steer well clear of any hassle involved in a buy to let property.

As a priority split the money up into smaller amounts which are covered by the government compensation scheme then have a mixture of savings accounts and fixed term bonds. (but not too long) If he,s a taxpayer I,d obviously consider using up him annual allowance on a cash iSA if yiu can find a decent one.

margaretclare

I'm in your grandad's age-group. 10-15 years ago I decided to give up on any and all of the so-called savings accounts, whether bank or building society. I decided to go for a stocks-and-shares ISA. By the way, I've often been asked 'why save at your age?' and the answer is 'because I just do not know what we may need in time to come'.

The question your grandad needs to ask himself is 'what do I need it FOR?' His circumstances may be very different from mine. DH and I have sometimes dipped into the private sector for healthcare, for example.

Does your grandad only want it for extra spending money?

It's no good him saying 'interest rates were a lot higher some years ago'. Yes, they were. High interest rates are good for some but bad for others. No good hoping for things to go back to how they were. That won't happen.

What I did - S&S ISA - is only good for the medium to long-term. Not for short-term gains.

tturnstill1988

Hi all

After reading the replies I think it!!!8217;d be a good idea to explain a bit more about his lifestyle and money plans.

He is registered as living in the uk but spends most of his year in Cyprus. Where he owns a house (mortgage free). He has no debts or loans or mortgages or finance etc.

The money was originally just inheritance for his two daughters and he planned on taking 10k a year that he got in interest and living off of that. However as I say, interest has gone down and now he finds himself chomping away into what he sees as his daughters inheritance pot.

He knows he won!!!8217;t get 10k a year in interest anymore but he wants help to maximise the interest so that when he takes his yearly withdrawal, it will eat less into his daughters inheritance than it currently is.

All his money is currently in a savings account with the bank of Cyprus. I assume best part of 200k of it is at risk.

Reading the replies I guess just searching for a mixture of savings accounts and bonds is the best way to go as well as having an isa ?

He will find it a bit daunting having a number of accounts however he wants the most out of his money.

Unfortunately investing in stocks / shares etc isn!!!8217;t an option. I haven!!!8217;t a clue about that and he wouldn!!!8217;t either.
I!!!8217;m in the building / property world and buy to let wouldn!!!8217;t fase me but it!!!8217;s something I don!!!8217;t have time to manage for him so that would be a no go as well.

Owain_Moneysaver

Will the value of his house in Cyprus put his estate at risk of paying inheritance tax in the UK or in Cyprus?

Is the Bank of Cyprus account with the UK subsidiary (FSCS protected to £85k) or in Cyprus (!!!8364;100,000 per depositor)

tturnstill1988

Hi
Sorry for the reply.

I am not sure about whether it will affect his inheritance tax allowance. The house in Cyrpus is worth i guess around 250k sterling.

Would this make a difference regarding interest rates on savings accounts?

His bank of cyprus account is registered with the UK FSCS protected people and not cypriot

Thanks

Audaxer

tturnstill1988 wrote: »

Unfortunately investing in stocks / shares etc isn!!!8217;t an option. I haven!!!8217;t a clue about that and he wouldn!!!8217;t either.

If he wants to be able to draw up to £10k a year from a pot of £260k and still be able to leave most of it as an inheritance, investing for income in a diversified portfolio of funds seems to me a possible option. I think it might be worthwhile for you and your grandad having at least an initial free discussion with an Independent Financial Adviser. You don't need to proceed after the free discussion, but I think it's certainly worth at least considering.