Where to save 300k? Interest earned to pay renting costs for OAP

Albermarle

eskbanker said:

warranty said:

Albermarle said:

This is a good comparison table. Every provider listed is covered by the FSCS £85K , even though you will probably not have heard of some them. Some will be internet only and a few app only.
They list all types of easy access, notice and fixed rate accounts + Cash ISA's.
One tip is at the top right hand of each list you will see a box named 'sort' and in the box it will say 'provider links first'
This gives priority to the providers they get commission from .
To get a full list click on the box and select 'rate' 

Thanks for your reply, I can't see a table or link though?

Sounds like the reference should have been to this:

https://moneyfactscompare.co.uk/

Yes that was it. Thanks,

dinosaur66

Dazed_and_C0nfused said:

warranty said:

JamesRobinson48 said:

How much State Pension does the person receive?

BTW, you might need to factor in the elderly relative's loss of certain means-tested state benefits once the £300k cash is received.

They are on a very low state pension of around 9.3k per year plus pension credit, they won't be entitled to pension credit once the house is sold

If that is their only taxable income, i.e. no other private or work pension income, then they can actually earn a decent amount in taxable interest before becoming liable to pay any tax.

The starting point is £18,570 so with £9.3k State Pension, which is actually 5.5% above the standard basic State Pension amount, they are looking at £9,270 in interest before owing any tax.

Wil be a little less from April as Personal Allowance remains the same but her State Pension will increase in the 2025-26 tax year.

NB.  The above assumes your £9.3k figure State Pension figure is correct and you have accidentally understated her State Pension by £775 by assuming it's paid monthly.

sorry this is a new one on me

never ever saw this figure before to i read it on your post

i am 58 so not yet a pensioner

starting point before tax £18570

does this rate kick in once you reach pension age ie extra £6k before tax allowance on all income generated or is it just to do with savings part of it plus pension ?

Albermarle

dinosaur66 said:

Dazed_and_C0nfused said:

warranty said:

JamesRobinson48 said:

How much State Pension does the person receive?

BTW, you might need to factor in the elderly relative's loss of certain means-tested state benefits once the £300k cash is received.

They are on a very low state pension of around 9.3k per year plus pension credit, they won't be entitled to pension credit once the house is sold

If that is their only taxable income, i.e. no other private or work pension income, then they can actually earn a decent amount in taxable interest before becoming liable to pay any tax.

The starting point is £18,570 so with £9.3k State Pension, which is actually 5.5% above the standard basic State Pension amount, they are looking at £9,270 in interest before owing any tax.

Wil be a little less from April as Personal Allowance remains the same but her State Pension will increase in the 2025-26 tax year.

NB.  The above assumes your £9.3k figure State Pension figure is correct and you have accidentally understated her State Pension by £775 by assuming it's paid monthly.

sorry this is a new one on me

never ever saw this figure before to i read it on your post

i am 58 so not yet a pensioner

starting point before tax £18570

does this rate kick in once you reach pension age ie extra £6k before tax allowance on all income generated or is it just to do with savings part of it plus pension ?

It does not matter whether you are a pensioner or not.
Every adult gets a personal allowance of £12570 
Then there is a starter savings rate of 0% on the next £5000
Then a £1000 savings allowance that every body gets. ( unless they are a higher earner)

So for example if all your taxable income ( from pensions, employment income etc ) is £16,000, you can earn £2570 in interest without paying any tax on it. 

How the starting rate for savings works - Money Saving Expert