trying to convince mum (79) to open ISA

Meltdown_2

It seems to me that there is a definite market opportunity for someone with town centre branches to come up with a passbook account that pays a reasonably good rate of interest and to stress this in TV adverts during the afternoon - comparing their rates with the pitiful ones now paid by many of the BS & ex-BS. (e.g. Hfx LG 0.75%, Shepshed 1.1% and these are AERs, so knock off 20% for tax!)

The hordes of senior citizens flocking to open accounts with them would make the Northern Rock queues seem like nothing ...

But to be serious for a second, presumably that was Yorkshire BS that john.xs was referring to.
A rate like that could be a good persuader to change, depending on their branch distribution. (A lot of these passbook holders would want the BS they have an account with to be visible in their high street.)
And after they have changed accounts once for a better rate, the next change is that bit easier...

BallandChain

Why would a 79 year old be concerned with ISAs? It's her money and she should spend it as she likes. I mean there comes a cut off point when you stop saving and start to enjoy your money.

hostertlady

Why would a 79 year old be concerned with ISAs? It's her money and she should spend it as she likes. I mean there comes a cut off point when you stop saving and start to enjoy your money[[]]

because why should be ripped off with her savings in a paltry BS account when she can get better interest in an ISA, hey just because she is 79 doesnt mean she should just accept what she is given and if i can help her to make the most of what she has saved after all these years then i will..

jem16

BallandChain wrote: »

Why would a 79 year old be concerned with ISAs? It's her money and she should spend it as she likes. I mean there comes a cut off point when you stop saving and start to enjoy your money.

So what do you use for emergencies like a new roof, washing machine breaking down etc? You still need savings so they might as well be in a tax-free environment.

BallandChain

Why is she saving still? She should be enjoying her money at her time of life. It's not as if you can take the money with you when your time is up.

jem16

BallandChain wrote: »

Why is she saving still? She should be enjoying her money at her time of life. It's not as if you can take the money with you when your time is up.

She doesn't need to still be saving - although it's still agreat idea to do so. You never know when you will need a new cooker, washing machine, roof etc etc.

However she obviously has savings so why waste them in a non tax-free environment?

BallandChain

I'm sure if I get to 79 I won't be worrying about extra interest Jem. Sure, keep a bit back for something like a washing machine, but enjoy the rest!

tawse57

I have gone through a similar thing with my Mum. It is a difficult situation as many people of a certain age still live in the belief that the banks act in their best interests. They also come from the day when a bank might only have one or two savings accounts and if your money was with them then the bank would act in your best interest and always ensure that you got the best interest going.

Of course, that no longer exists but it is almost impossible to convince people of a certain age that they need to keeping moving their money around to find the best deals and even switching from one bank to another.

As others have stated many still offer passbooks on cash ISAs and there is, again as others have stated, the option of printing off online statements for your Mum and keeping them in a book. I suggest the first thing you do is get your Mum interested in the Internet - have you done this - and show her things such as her own house on Google Earth, show her online shopping with Tesco and M&S, something my own Mum found fascinating, and then build up to showing her your own online accounts and how you can access your bank info, move money around instantly, etc. Get your Mum to buy something online from M&S - a pair of slippers or something - which will make her familiar with online shopping, being able to browse the slippers, different styles, different colours, etc. I mention M&S as all Mums like M&S, the slippers will come within a few days and, as you can emphasise to your Mum, if she does not like them or they do not fit YOU can take them back to your local M&S and get a refund. My Mum loved the idea that she could shop at M&S online and then I could return stuff locally if it was no good. This kind of thing will help familiarise your Mum with the Internet and build up her confidence to maybe let you open a cash ISA for her online.

I feel I should also point out that many children go into denail when their parents get old. We blinker ourselves to the fact that our parents are getting old and nearer to their time of death. At first the parent/child relationship swaps around 100% and as a loving child it is often difficult to realise that sometimes, just as your Mum cajoled you to eat your greens when you were a child, that you now have to do alot of cajoling to get an elderly parent to do something. There are now countless books on how to be a parent but very few on how to be a child who becomes a carer. If you are looking after and helping your Mum then you are a carer.

One last point. You sound like a lovely lady who is trying to do the best for your Mum. Sadly, and please understand why I am saying this, there are many children around who use old age as an opportunity to swindle money from their parents. I have witnessed some terrifying situations and know of more than one elderly person who was financially confomrtable until a child, or indeed children, swindled them out of everything and left them both penniless and homeless. If you are an only child you should make sure that however you help your Mum with her finances that you cross all the is and dot all the ts when it comes to the legalities of how her money is invested. If you have siblings then you need to inform them of what is going on and if there is any schism in the family you could potentially be storing up all sorts of problems for the future.

Finally, as others have said, perhaps your Mum should enjoy her money now at her age - is she a frail 79 or is she like an ox who is going to live to a 100? Have you discussed with your Mum what will happen to her money when she dies and, possibly worse, if she needs care in the future. Perhaps saving her money simply so that Social Services gets it all in a few years is not the best thing to do IF you are a devoted and loving child who will always be there to look after your Mum from a financial point of view. Or, and again I say this because I have witnessed it, perhaps your Mum needs every penny in case there is no one who is going to look after her??? You will be shocked how many children basically abandon elderly parents here in the UK these days!

I hope this has helped and given you some thought. Best wishes.

T.

jem16

BallandChain wrote: »

I'm sure if I get to 79 I won't be worrying about extra interest Jem. Sure, keep a bit back for something like a washing machine, but enjoy the rest!

I'd rather the money was with my mum than the taxman or the bank. That way she could enjoy it even more.

BallandChain

'I'd rather the money was with my mum than the taxman or the bank.'

It isn't advisable for anyone to keep their savings in the house, and I'd be concerned if an elderly relative of mine was doing that.