My grandmother currently has 25000 savings invested in a high interest saving account supplied by the Clydesdale bank. I personally do not eel that this is the option that is yielding the best interest and was wandering if people had any suggestions on how best to invest this amount of money????
Any help would be appreciated.
Thanks
....and the interest rate of that account is?
And does she pay tax?
Putrid poetry, dismal doggerel, extrava-stanzas...
I'm not too sure what the exact rate of interest is, for the last financial year she only received 68 interest. Yes she does pay tax on her interest.
So they're paying her about 0.3% and severely taking the piss regardless of the tax, if some young chav was robbing old ladies for that much money they'd be vilified in the tabloids!
Find a decent deposit account and ensure she uses her 3k ISA allowance if she hasn't already done so, also check whether she is liable to tax at all, and fill in an R85 if not. She can claim back tax paid on this interest but given the eye watering stinginess of the Clydesdale bank it's not going to be much.
If she wants to take a little risk she could use her Maxi ISA allowance and invest up to 7k per year into some unit trusts etc, maybe one that is focused on bonds (Rathbone Income?) as they're a little more secure. Obviously you may lose some of your principle if the markets misbehave, however given the lack of interest and the fact that inflation is eroding her savings she is currently losing money anyway.
In message , Aztech writes
Thats an "equity* Income fund. Perhaps more the like of Standard Life Higher Income?
In message , Iwannabefamous!!! writes
In a 'high interest' account? Was the full £25k invested for the whole period from april 04 to apr 05?
The tax question was superfluous because it will be constant.
To my knowledge the 25K has been in that account for about 4 years and annually she receives around 70 interest. I just thought there was surely a better option for her.
In message , Iwannabefamous!!! writes
Undoubtedly you are right. I am sorry to question you, it just seemed such a ridiculously low amount to receive from a 'high interest' account. One thought though, she isnt having some of the interest diverted to another account is she?
No, there is no money being transferred at all out of that account, we've been discussing leaving Clydesdale Bank for some time now and have decided to actually do something now!!! Any help or suggestions would be extremely helpful
In message , Iwannabefamous!!! writes
Sorry! Forgot your original question!
Try
What also surprises me though is that Clydesdale actually offer an account offering 4.06%. Why havent you transferred to that? It may not be the best rate but its certainly not bad and keeping it at the same place will avoid the loss of interest whilst the dosh is transferred elsewhere.
Any help or suggestions would be much appreciated.
In message , Iwannabefamous!!! writes
You could loan me 10k (under the table) and I'll pay you back at a fixed 200 per month for 5 years....thats 12000, can't argue with a tax free 2000 return ;)
This is actually serious and I'd be will> In message ,
In message , " snipped-for-privacy@gmail.com" writes
All that for a measly 8%?
Come on, for such a safe low-risk investment 8% is hardly measly.
But what does he mean by tax free? Sounds like incitement to commit tax fraud.
I don't know how tax works on investments...but if one was to invest
10k with a bank at 8% would you see the full 12000 at the end of the 5 years?
What about the risk of a dirty needle at the Tattooists?
And dont forget, its unsecured
wrote
Depends on what level of other income you have! [This determines the tax rate you pay.]
Actually, if you had no other income (so well within tax threshold), then you'd get back 14,593 at the end of 5 years (if the bank pays 8% interest each year & you don't withdraw any of the loot during those 5 years).
Who pockets the missing £100?
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