AIBU -50k - NS&I

[JessicaRabbit23]

AIBU to put £50k each into a premium bonds account for my 3 kids whilst I wait for August to pay my mortgage off so I don’t get charged fees? Not sure if it’s morally wrong or not.

I'd just stick it into your bank account and wait til August.

Can I ask which s and s isa? Ok if don't want to say.

I can’t see why you would do this? Just put it in a savings account?

Wouldnt it be pointless putting into an Isa for a few months

It’s putting her money into a tax free investment instrument above the limits the law allows by pretending it belongs to her children.

But it does belong to her children.

Bit puzzled. Haven't read the whole thread but there is no interest on PBs. You might lose a bit to tax on a savings account but assuming you don't win anything from PBs then surely savings account(s) are a better option?

Exactly.

Pretty sure you won't be entitled to any winning prizes for March or April, come to that, if you did it now anyway...monies have to be in the bonds for one full month before a prize can be claimed. So possibly looking at a May/June draw. Based on that is it worth it if you're overly concerned it's wrong to do.

Fidelity.

Where are the 150k now?

OP go ahead and do it. You’re massively over thinking this.

Technically from a legal point of view she may well have, doesn't bother me but unless you are a financial advisor and have full knowledge of the situation you're not in a position to assert so confidently
Feel free to read up on the matter, eg
www.kirkrice.co.uk/blog/gifting-money-to-children/

Just put it in cash savings and pay the £600 tax or whatever it is, don’t be a tax avoider.

Why would you assume she’s not going to win anything? The maximum PB’s you can have is £50k and the more bonds you have the more regularly you win. It’s like a raffle system. Effectively OP would have the maximum x 3.

But in OP’s case PB’s aren’t a good idea because she’ll have to state where the money came from, as others said, and the money is coming from here kids accounts. Better to go legit by putting the £150k in a savings account and take the hit on tax in this scenario.

Why? As long as she gets one that allows access and pays interest monthly she'll be getting interest tax free, better than PBs with no guaranteed win.

She may not want to if she wants to use the allowance for longer term savings in which case a standard savings account would be best.

Not according to any of the OP's posts.

Just chilling in my Lloyds saver account with rubbish interest. I have put £20k into an isa with 212 trading. Will put another £20k in come April. £100k+ into HSBC because of a good rate and travel & medical insurance. £100k+ into chase bank with a good interest rate. Paid the maximum I could off my mortgage.

thanks for all the replies. I won’t put it into my kids names then. Just incase. Will maybe put £50k for husband and do him an ISA.

just for perspective I am someone who isnt the best with money. I have never had to worry about paying tax on savings because I have never had savings.

This sounds very sensible op. Why take the risk when you’re probably better off not doing it anyway?

Edited response as seen you have decided.

TBF the tax due on the interest will be minimal for the short time you'll accrue interest. Likely not even go over the allowance.