Would Like To Know What To Do Next

[JinnyJoan]

Lately I have been watching my money and have switched to some accounts to get a better rate which I should have done some years back.

However I just opened an ISA account and hopefully within 2 months time I will have £20,000 in it.

That's all you are allowed so if I make some more money is there any other accounts I could put the money into.  Thanks for your help.

[barry1010]

Premium bonds are tax free, or a stocks and shares ISA might appeal to you if you like a bit of a gamble.  You can have both types of ISA

[JinnyJoan]

lol Barry - don't like gambles  - am a little confused re the ISA - bank told me I am only allowed one ISA ie £20,000

[New Judge]

There are lots of places you can put more money (fixed rate bonds, flexible savings accounts, etc.), but any interest earned will be subject to income tax (income from an ISA is not taxable).

You are currently allowed to earn £1,000 in interest tax free. However, if you have a total income from other sources (pay, pensions - including State Pension, etc.) of less than £17,570 you have an additional allowance. This is the difference between £17,570 and your total income.

So, if you have income of, say, £15,000, you have the normal £1,000 tax free allowance plus (£17,570 - £15,000 = £2,570). So you can earn £3,570 in total interest before tax is due.

[barry1010]

Top savings accounts here, from a reliable source.  Not sure if all are available in NI

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

[New Judge]

"...or a stocks and shares ISA might appeal to you if you like a bit of a gamble.  You can have both types of ISA"

Yes she can, but the total invested must not exceed £20k, Barry. She already has plans to invest £20k in a cash ISA.

[JinnyJoan]

thank you NewJudge - but alas too complicated for me - haven't read your link Barry but did google Premium Bonds and I didn't know there is no interest with them - so you would just be better putting any new money in a box under the bed LOL - will read your link now

[barry1010]

Yes, I thought she might like to split her allowance.

[barry1010]

We do very well out of our premium bonds but we all have the maximum £50k.  Still waiting for the £1m prize, though 

[JinnyJoan]

as in winning Barry and being lucky - if that's right - well done.

You know I can't deal with English stuff on the phone etc - so I am with my local new bank which I can have face to face if I want answers.  So I did think of Post Office savings so that I can talk face to face.  If that makes sense.

 

[JinnyJoan]

from google

I didn't know how Premium Bonds work

/// you are entered into a monthly prize draw where you can win between £25 and £1 million tax free.//  

so this draw could be millions and millions of people/pounds - is that right

 

 

[barry1010]

The Post Office Instant Saver hasn't got the best interest rate but might suit you.  Be aware the interest rate drops to next to nothing after 12 months.

Try and find a fixed term account if you are prepared to switch when it ends

[dasherman]

If you want tax free savings your options are:

ISA's - max of £20k per year across either cash of equities.

Premium Bonds

Tax Exempt Savings Plan - max £25 per month

Everything else is potentially taxable. But as someone else has said already, there are ways to avoid tax depending on your income.

[ToraToraTora]

I'd bung it all in premium bonds, you'll win most months with that amount and you are in with a chance of a big prize. Tick the reinvest winning option and your money will grow.

[barry1010]

Do you know why you are saving it, JJ? If you've got enough income to live well on and a good chunk of money for emergencies, why not spend it on making your life easier or doing the things you've always wanted to do? 

[davebro3]

My premium bonds have tootled along at an average of 2 or 3 prizes a month but in April I had 9 prizes & in May 4 prizes!

Not life changing but certainly above some savings accounts rates.

But yes - if it's just going to go to your heirs try spending some.

[JinnyJoan]

well at the moment I will be thinking of spending money on the house at the moment - so that will eat away  some of it.  My life is ok at the moment - I have no desire for holidays etc as I won't leave Maxie - but if I get a good dog sitter may in the summer get away for a few days.  

[barry1010]

There are many dog friendly hotels, B&Bs and self catering holidays, JJ. 

[jourdain2]

I'll back Barry on that JJ.  We've taken our dog with us to holiday cottages every year and more places are becoming dog-friendly as belts tighten.  After 12 yrs we havefinally found a kennels where he can be left and is very happy for a few days or a week (it was forced on us -wedding in Devon or dog in kennels).

Suddenly life is opening up. You aren't in the first flush of life either, so I'd have that holiday.

[jourdain2]

PS My elder daughter is a Chartered Independent Financial Advisor - and someone like her would be able to help answer all your questions and maximise your cash - but it costs and you would need to be sure you had a good IFA (Chartered is a good clue).  Iwas too scared to do anything with my stash and so lost quite a lot through inflation until I could  hand it over toher.  Mainly ISAs.

[Hopkirk]

Stick any extra into an NS&I Direct Saver account, which pays more than their ISA.

As others have said, you can earn £1000 in interest tax free.

With Premium Bonds you might do well or very badly. For a few to win big prizes, many have to get little or nothing.