Is it legal to ask a family member (my mum) to save money for me?

masonic

Exodi said:

Please note that if someone does intend to capitalise on 'gifting' money, it is important to remember the cons - mainly that the money ceases to be yours. One particularly bad argument with the person and you can kiss goodbye to any reasonable prospect of recovering the money.

An extension of this implication is that the person being gifted the money may be 100% trustworthy, but that doesn't help if something bad befalls them, such as being a victim of fraud, being incapacitated or losing capacity, or even getting into financial difficulties.

Simonblakely

Band7 said:

NB. If your real name is Simon Blakely, you should sunset this account and open another one with a nickname that doesn't give your name away.

Ha ha not my real name.  I tried opening an account with halifax but was declined as I have lloyds and hbos.  When I said allowance, mum and I have lloyds accounts so was just thinking of using her regular saver.  I am not claiming benefits of any sort  

Simonblakely

phillw said:

You can open 6 across Natwest, RBS, Lloyds, Bank of Scotland, Halifax 
Totalling £1450 a month, with interest rates from 4.5% to 5.25%

Barclays Rainy day saver allows you to save £5000 at 5% too, though you need two direct debits on the account to offset the £5 monthly fee for.

I'm not touching regular savers lower than that, because in my opinion easy access or fixed rate isa's are a better bet.

I've already got NatWest and RBS maxed out.  Soon will have Barclays maxed and soon will have lloyds and bank of scotland set up.  Shame I couldn't get Halifax.  

diystarter7

There are always other options that are well within the rules as following the rules from the start makes it easier to follow them as one gets older

Credit to you for saving and thinking bout saving even more money.

Don't forget your pension as the sooner you have a better one/etc the sooner you can retire.

RedImp_2

Do you have to have a regular saver? Can’t you set up a standing order to save whatever amount you were wanting to save into the best easy access account for sake of argument 

Band7

Simonblakely said:

phillw said:

You can open 6 across Natwest, RBS, Lloyds, Bank of Scotland, Halifax 
Totalling £1450 a month, with interest rates from 4.5% to 5.25%

Barclays Rainy day saver allows you to save £5000 at 5% too, though you need two direct debits on the account to offset the £5 monthly fee for.

I'm not touching regular savers lower than that, because in my opinion easy access or fixed rate isa's are a better bet.

I've already got NatWest and RBS maxed out.  Soon will have Barclays maxed and soon will have lloyds and bank of scotland set up.  Shame I couldn't get Halifax.  

You only mention High Street banks. There are many others, admittedly not all paying 4.5%/5.25%. You could also consider the Barclays Rainy Day Saver as well as Fixed Rate and/or Notice accounts, and -depending on your tax payer status- a cash ISA. If you don't need the cash in the short or medium term, upping your pension contributions might be sensible.

Simonblakely

Thanks everyone for your comments.  I guess I'll have to put up with lower rates elsewhere (I think Atom bank is best at 2.52%).  As I said my Barclays rainy day saver will be maxed out soon.  Already have rbs and natwest at £1000 each.  I just wanted check the legality of getting my mum to save for me.  

sevenhills

masonic said:

An extension of this implication is that the person being gifted the money may be 100% trustworthy

The intent of the OP is not to gift money, he wants his mum to save his money for tax reasons.
If his name is not Simon Blakely, but in fact Alan Sugar, then it would be considered tax evasion.

Simonblakely

sevenhills said:

masonic said:

An extension of this implication is that the person being gifted the money may be 100% trustworthy

The intent of the OP is not to gift money, he wants his mum to save his money for tax reasons.
If his name is not Simon Blakely, but in fact Alan Sugar, then it would be considered tax evasion.

Its not for tax reasons as you need £40,000 in savings to earn 1k interest a year which I don't have.  I already fill out a self assessment for my rental property, I am happy to pay my fair share

masonic

sevenhills said:

masonic said:

An extension of this implication is that the person being gifted the money may be 100% trustworthy

The intent of the OP is not to gift money, he wants his mum to save his money for tax reasons.
If his name is not Simon Blakely, but in fact Alan Sugar, then it would be considered tax evasion.

I think it's clear that the intention is to get around the deposit limit the bank places on the regular saver account.

Simonblakely said:

sevenhills said:

masonic said:

An extension of this implication is that the person being gifted the money may be 100% trustworthy

The intent of the OP is not to gift money, he wants his mum to save his money for tax reasons.
If his name is not Simon Blakely, but in fact Alan Sugar, then it would be considered tax evasion.

Its not for tax reasons as you need £40,000 in savings to earn 1k interest a year which I don't have.  I already fill out a self assessment for my rental property, I am happy to pay my fair share

That implies a rate of 2.5%. You can get 2.81% from an easy access savings account, so why bother with the regular saver at all if that's all it pays?