WHATS THE BEST THING TO DO?

Bobby4puddings

Hi, I put this question on another category but it was recommended it should be on this one, so here goes.
My wife and I are currently retired, I have my state pension and also a private pension, the wife isn't old enough for a state pension but has a private one.
After 2 lots of recent inheritances to the wife and I I'm left wondering what to do.
Both of us have maxed out on cash ISA's, and premium bonds. We still have over £100K in a joint easy access savings account with a 5.2% interest rate (at the moment, but dropping end of May) .
I'm struggling as to what to do with the £100K savings in the joint easy access savings account to reduce any Personal Savings Allowance tax. 
Should we just keep it in the savings account and pay the PSA tax (at least it will get some interest) or can I put it elsewhere which would be more tax efficient.
I have 5 grandkids all 16yrs and under, can I give them some money tax free?
Any thoughts would be appreciated!
I have no mortgage.

Mark_d

What do you want to achieve with the £100k?  At one extreme you could give it all away (free from inheritance tax is you live for at least 7 years).  At the other extreme you could spend it on doing luxury cruises around the world.

eskbanker

Bobby4puddings said:

Both of us have maxed out on cash ISA's, and premium bonds. We still have over £100K in a joint easy access savings account with a 5.2% interest rate (at the moment, but dropping end of May) .
I'm struggling as to what to do with the £100K savings in the joint easy access savings account to reduce any Personal Savings Allowance tax. 
Should we just keep it in the savings account and pay the PSA tax (at least it will get some interest) or can I put it elsewhere which would be more tax efficient.

It'll generally make more sense to aim to maximise net return, rather than to minimise tax as such, and if you've already maxed out ISAs and PBs then there aren't going to be many tax-efficient opportunities anyway.  Are you both fully using your starter savings rates with your pension income?

https://www.moneysavingexpert.com/savings/tax-free-savings/

friolento

eskbanker said:

Bobby4puddings said:

Both of us have maxed out on cash ISA's, and premium bonds. We still have over £100K in a joint easy access savings account with a 5.2% interest rate (at the moment, but dropping end of May) .
I'm struggling as to what to do with the £100K savings in the joint easy access savings account to reduce any Personal Savings Allowance tax. 
Should we just keep it in the savings account and pay the PSA tax (at least it will get some interest) or can I put it elsewhere which would be more tax efficient.

It'll generally make more sense to aim to maximise net return, rather than to minimise tax as such, and if you've already maxed out ISAs and PBs then there aren't going to be many tax-efficient opportunities anyway.  Are you both fully using your starter savings rates with your pension income?

https://www.moneysavingexpert.com/savings/tax-free-savings/

Why do you assume pensioners qualify for the starter savings rate?

eskbanker

friolento said:

eskbanker said:

Bobby4puddings said:

Both of us have maxed out on cash ISA's, and premium bonds. We still have over £100K in a joint easy access savings account with a 5.2% interest rate (at the moment, but dropping end of May) .
I'm struggling as to what to do with the £100K savings in the joint easy access savings account to reduce any Personal Savings Allowance tax. 
Should we just keep it in the savings account and pay the PSA tax (at least it will get some interest) or can I put it elsewhere which would be more tax efficient.

It'll generally make more sense to aim to maximise net return, rather than to minimise tax as such, and if you've already maxed out ISAs and PBs then there aren't going to be many tax-efficient opportunities anyway.  Are you both fully using your starter savings rates with your pension income?

https://www.moneysavingexpert.com/savings/tax-free-savings/

Why do you assume pensioners qualify for the starter savings rate?

I'm not assuming anything, I'm asking the question?

friolento

eskbanker said:

friolento said:

eskbanker said:

Bobby4puddings said:

Both of us have maxed out on cash ISA's, and premium bonds. We still have over £100K in a joint easy access savings account with a 5.2% interest rate (at the moment, but dropping end of May) .
I'm struggling as to what to do with the £100K savings in the joint easy access savings account to reduce any Personal Savings Allowance tax. 
Should we just keep it in the savings account and pay the PSA tax (at least it will get some interest) or can I put it elsewhere which would be more tax efficient.

It'll generally make more sense to aim to maximise net return, rather than to minimise tax as such, and if you've already maxed out ISAs and PBs then there aren't going to be many tax-efficient opportunities anyway.  Are you both fully using your starter savings rates with your pension income?

https://www.moneysavingexpert.com/savings/tax-free-savings/

Why do you assume pensioners qualify for the starter savings rate?

I'm not assuming anything, I'm asking the question?

When you ask "Are you both fully using your starter savings rates with your pension income?", it implies that pension income comes with a savings starter rate.

eskbanker

friolento said:

eskbanker said:

friolento said:

eskbanker said:

Bobby4puddings said:

Both of us have maxed out on cash ISA's, and premium bonds. We still have over £100K in a joint easy access savings account with a 5.2% interest rate (at the moment, but dropping end of May) .
I'm struggling as to what to do with the £100K savings in the joint easy access savings account to reduce any Personal Savings Allowance tax. 
Should we just keep it in the savings account and pay the PSA tax (at least it will get some interest) or can I put it elsewhere which would be more tax efficient.

It'll generally make more sense to aim to maximise net return, rather than to minimise tax as such, and if you've already maxed out ISAs and PBs then there aren't going to be many tax-efficient opportunities anyway.  Are you both fully using your starter savings rates with your pension income?

https://www.moneysavingexpert.com/savings/tax-free-savings/

Why do you assume pensioners qualify for the starter savings rate?

I'm not assuming anything, I'm asking the question?

When you ask "Are you both fully using your starter savings rates with your pension income?", it implies that pension income comes with a savings starter rate.

That's not what I meant, but in case anyone else misinterprets the point being made, let's phrase it as "do you have any starter savings rate left or does your pension income fully deplete it?".

LHW99

Even if not working you could both put £2880 in a personal pension or SIPP and get tax relief from HMRC paid in making it £3600. You can do it each year until you are 75.

Money in a pension is outside your estate for inheritance tax (if that matters) and if you are both likely to be OK for income after first death, you could make a nomination to your grandchildren for these small pensions.