Savings interest advice please ( and other stuff )

deejaybee

Hi all.

Long story short - OH and myself have sold our house ( have exchanged, and complete in couple weeks )

We are relocating back to Devon ( spent 16yrs there, before making a mistake moving North for a year or so )

Planning to rent for the forseeable ( when we find somewhere suitable ) .

We have both given up our jobs, and will enjoy life for a year or so, and then evaluate if we need to do some part time work, for financial or boredom reasons ( or both )

So after house sale and associated costs, we will have approx 160K - obviously we can stick 20K each in a cash ISA,  but pondering what to do about the balance left ?

I will have earned slightly more than the 12570 allowance this tax year ( employment and a small occupational pension )

My wife only worked for a couple of weeks of this tax year - so will have unused personal allowance.

We planned to put the balance in a joint account, ( so we could both access it if something drastic

happened to one of us ) but maybe it would be better to deposit in an account in my wifes name to utilise her unused tax allowance )

nb: This is of course NOT a sensible retirement plan, but given the state of the country, we want to have some good years while we are relatively healthy ( 64 & 59 next birthdays )

Dazed_and_C0nfused

deejaybee said:

Hi all.

Long story short - OH and myself have sold our house ( have exchanged, and complete in couple weeks )

We are relocating back to Devon ( spent 16yrs there, before making a mistake moving North for a year or so )

Planning to rent for the forseeable ( when we find somewhere suitable ) .

We have both given up our jobs, and will enjoy life for a year or so, and then evaluate if we need to do some part time work, for financial or boredom reasons ( or both )

So after house sale and associated costs, we will have approx 160K - obviously we can stick 20K each in a cash ISA,  but pondering what to do about the balance left ?

I will have earned slightly more than the 12570 allowance this tax year ( employment and a small occupational pension )

My wife only worked for a couple of weeks of this tax year - so will have unused personal allowance.

We planned to put the balance in a joint account, ( so we could both access it if something drastic

happened to one of us ) but maybe it would be better to deposit in an account in my wifes name to utilise her unused tax allowance )

nb: This is of course NOT a sensible retirement plan, but given the state of the country, we want to have some good years while we are relatively healthy ( 64 & 59 next birthdays )

If you're comfortable giving your wife some of your share then that seems a logical view.  Just don't forget it's then her money.

And remember interest is taxed based on when it's paid so if you opt for a 1 year fixed rate account(s) with the interest payable at the end of the fix term it will all be taxable in 2025-26, not 2024-25.

Whereas a monthly interest account (or short term fix) would bring some interest forward into 2024-25.