Is ISA best savings option for pensioner

thriftybabe

My mother in law and father in law are looking to save some of their hard earned money into ISA. They are now both pensioners and father in law is paying tax on one of his pensions so I thought ISA would be best for him. Not sure if the same for mother in law as she does not pay any tax. Any help would be appreciated.

Aegis

If she doesn't pay tax and isn't likely to for the rest of her life, then a normal high-interest savings account would serve her just as well as an ISA. However, if there's a chance that she'll pay income tax at some point, then saving in an ISA really starts to make a lot of sense.

In all honesty, the difference between the best ISA and the best normal account is fairly slim at the moment from what I can remember, so it's not going to make or break someone's life to pick one of the other if they don't pay tax.