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The Dogmother

ISA/savings question

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Sorry to hear about your Mom, C.

Similarly when my grandad died I opened a Skipton Lifetime ISA, the government give a 25% bonus with the idea that it goes towards buying a house or retiring so if you put in £4000 they add £1000. It's all done online so R can do it while she's at uni which is what I did - not sure if you are able to open one on her behalf.

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  Depends on what he wants her to keep it for, what the intended use will be and also depends of the amount of funds to be invested for her.  But here goes - we helped match DD's savings into a mortgage account, but we did set aside the same funds for both siblings to keep it equal and fair - and our interest rate is better long term than theirs at the moment - don't ask I have no idea but it's good to not keep your eggs all in one basket!  If I hear him trying to talk about money to me I have the attention span of ooh squirrel!  Then my eyes glaze over and he says "you are not taking this in are you!" Ummmmmm:$

So I hope that's of some use for you and anyone else - 

 

No he can’t, but can give her the money to do so herself.

Very Long Term – Pension

As she is not earning he can only put in £2880 and Government will top up to make it £3600 per tax year (see below).

Long Term – LISA

Life Time Savings ISA – You can put in £4k per tax year and government will add 25%, you can then use this towards a purchase of a house, as long as you haven’t ever bought one before. Or alternatively towards a pension – but this is not recommended.  So if there is no prospect of buying a house do not go for this option.  £4k could go in now and another £4k when the new tax year starts – 6th April 2019.

 

Medium Term– Stocks & shares ISA

Short TermCash Savings in an ISA or non ISA savings account – you can get fixed terms so the money would only be accesses after say 1 or 2 years or longer, but interest rates are pretty poor.

 

As I say what is the intention for the money – is it for short access after Uni, or long term use?

 

My choice would be

LISA – to help with a deposit for a house £4k can be paid in each year until the house is bought.

 

And if we are talking a lot of money start a pension -  as she is not earning then you can only put in £2880 and Government will top up to make it £3600 per tax year.

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Thanks Val, and thank M for me. I have been looking online and calling around; found the Coventry BS, which offers a 5 year fixed rate ISA at 2% with no access (that's what we'd tell her!) and the bonus is that I can open it for her.

I need to text Madam (assuming that she will answer :roll: ) and get a notarised copy of her passport.

 

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