ISA or regular saver?

[jason.p]

I'm about to lend my daughter a couple of thousand pounds and would like some advice on the most beneficial way for her to pay me back with regular payments. Would an ISA or regular payment account be best, and which bank or building society would give the best return?
I have tried to get info from banks etc on-line, but I just get confused!!!

[factor-fiction]

I'm not sure of how the arrangment is going to work. Over what period do you want her to repay the money- and do you want a set amount back each month? Is your aim to ean interst for her?
If she is to repay it over a short period then the interest will not be great. It also depends on wheher she is a taxpayer ((basic or higher rate) and whether she already has an ISA and has contributed anything this tax year.

[SlackAlice]

Do not think you can pay in to another person's ISA direct. All payments must come from the ISA's holder bank account

[jason.p]

Thanks for replies. The idea is to pay back over around two years with regular payments, into some sort of account that will make us some interest, hopefully over the rate we would get in a regular deposit account.

[Ethel]

With interest rates so low at the moment, it really is very difficult to recommend any particular product.

Barclays has a good offer at the moment though - 6% on a Regular Saver account, but you must deposit between �20 and �250 every month. You can only apply in branch.

I think even paying tax that is going to be hard to beat.

[jason.p]

Thanks Ethel, I'll pop down to Barclays and have a chat