Where is the best place to put savings for a non tax paying pensioner?

by , 18 Apr 2012Open Question

I only have state pension now over 60 years but have saved a nice amount in a tax ISA getting 3.10% this past year.

I now realise that is probably not the best rate/account for non tax payers but every provider I look at has a minimum income to get a good interest rate.

Even Cash Back credit card accounts have a minimum income which is way above mine (about ?5,500 per annum).

I need to be able to get access to my money & I may have to move home soon. My interest this past year on ?25,000+ was rubbish.

Answers

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Hello page, welcome.
Quite a lot going on with you.
As you are aware as soon as you put money in an account that gives you "Easy/Instant Access" the interest rate falls quite dramatically. Banks like to know they have your money untouched for 3 - 5 years to get you a better rate.
It would still be worth considering some money being saved in an ISA, if you roll it over year by year by moving it to better paying Isa Accounts when you can, you will always have that TAX FREE capital to fall back on.
Who knows 2 or 3 years on you could have a small win on the lottery and suddenly you become a TAXABLE PENSIONER.
If you had decided to but all your investments in non-taxable accounts then you could find yourself paying tax from your invested winnings and on the rest of your non-taxable accounts that became taxable.
That aside, if your ?25K is all in ISA accounts then let's see what non-taxable accounts for this amount can offer:

by Priceless, 19 Apr 2012

Again, if you do decide to move home soon you might need access to money, so consider that in how long you wish to invest for. Once your house move is completed you'll have a better idea of you immediate financial future.

by Priceless, 19 Apr 2012
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