Investment for 70 year old?

jane2006

Hi all,
My Mum went to Halifax for a review and they have told her that she would be better to have her money paid into an ISA. She has a cash ISA already and a couple of savings accounts and Premium Bonds.
She works 3 days a week at Tesco and her only expense is her car!
She just wants her hard earned cash to work for her and is quite happy to lock it away!!! ... any ideas?

Many thanks.:j

martinman3

The opinion of those who know on these forums has been that advisers at Halifax are not independent and only sell Halifax S&S ISA products which do not perform well.
Your mum should see a Independent Financial Advisor.
Try http://www.unbiased.co.uk/
and take a look at this thread
http://forums.moneysavingexpert.com/showthread.html?t=696419

There are many IFAs who visit these forums who will advise you further I am sure.

Primrose

If your mother is currently earning and paying tax, making use of her £3000 annual Cash ISA allowance every year seems sensible so she could take out an additional one in April when the new tax year starts and the annual maximum limit rises to £3600. If she's happy to lock most of her savings away for a year, there are some competitive One Year Savings Bonds around. Icesave are good if she's can use online banking; otherwise Birmingham Midshires or Kent Reliance usually offer consistently reliable deals. But she should keep her emergency money in an easy access account.

margaretclare

Hello

I have a similar problem and I'm a couple of years older than your Mum - income to spare not needed for living.

I've taken on board Martin's suggestion of a 'savings fountain' - max out ISAs
first. Mum can put £3600 into a cash ISA from April, £3000 this tax year. I also have an equity ISA but I am NOT adding to that at the moment - goodness only knows how long it will take for the stock market to recover and I may not be around that long!!

After the cash ISA, my next port of call is NS&I index-linked Savings Certificates - the good old-fashioned standby! As your Mum is happy to lock money away, she could have Savings Certificates for either 3 or 5 years.

She presumably has State Retirement Pension plus her earnings, that means she can receive up to £7550 a year before she falls into the tax-paying bracket - that's the current tax year. From April this goes up to £9030. Depending on her total income, pensions plus earnings, she may not need to worry too much about getting tax-free interest on her savings!

Halifax, or any bank for that matter, can only sell their own products, and obviously they have an interest in selling them. I think Primrose's suggestions are good.

Don't forget, it's still possible to get money out of a cash ISA fairly quickly and without difficulty. The same isn't true of an equity ISA.

HTH

Margaret

Mikeyorks

If she's primarily with Halifax - then she should have their High Interest current account and keep that topped up to (but not above) the £2,500 that pays 6.17% (thereafter its 0.1%). That's her 'emergency money' sorted?

As previous post(s) - an ISA is eminently sensible, look at the best rates on the thread running on the separate ISA forum. If staying with Halifax on that .. consider transferring her money to at least a 1 year fixed product. Ensure she doesn't have their basic variable rate ISA - as she will be getting only circa 4%.

And, get rid of the Premium Bonds - unlikely they're 'working for her'! And put the money in a 1 year fixed 'bond' where the interest rates remain high.

http://www.halifax.co.uk/savings/personalrates.asp#Fixed_rate_Halifax_ISA_Saver
(Halifax fixed rate ISA)

http://www.moneyfacts.co.uk/savings/bestbuys/fixed-rate-savings-accounts.aspx
(current best buy fixed rate 'bonds')

margaretclare

I would agree about premium bonds - waste of time as a savings strategy.

Margaret