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Original poster

For those that know about financial stuff, could you help me please?

19 replies

saythatagain · 09/10/2007 13:45

Its really on behalf of my deal old mum. She currently has a lump sum (£45k) sitting in a high interest easy access account. It's yeild is about £120ish per month after tax. Is there a better place to put it or is she better staying where she is? TIA

OP posts:
Original poster
saythatagain · 09/10/2007 15:53

Bumpety-bump.

OP posts:
CarGirl · 09/10/2007 15:54

ISA?

CountessDracula · 09/10/2007 15:54

what is she looking for?
Maximum monthly income?

CountessDracula · 09/10/2007 15:56

If htat is all she is after and is not concerned with the capital sum then she could get an annuity. How old is she>?

Original poster
saythatagain · 09/10/2007 15:56

Yes CD, think so. Instant-ish access; she's not an impulse buyer being nearly 70!

OP posts:
claricebeansmum · 09/10/2007 15:57

Should she be paying tax on interest?

Original poster
saythatagain · 09/10/2007 15:59

Remind what an annuity is? I think she just wants to make sure that, considering it's in 'normal' account, it's in the best one. I have no idea about having extra money to safe.

OP posts:
Original poster
saythatagain · 09/10/2007 16:00

I did ask that q Clarice but she seems to think yes.

OP posts:
claricebeansmum · 09/10/2007 16:00

So she is had other income?

Original poster
saythatagain · 09/10/2007 16:01

Pensions? things like that? I assume so i.e. she is 'earning' above the taxable amount?

OP posts:
Original poster
saythatagain · 09/10/2007 16:02

I think that should read non-taxable!

OP posts:
CountessDracula · 09/10/2007 16:02

with an annuity you lose the lump sum though, in exchange for a much higher income. You get more for being in poor health, being a smoker etc too (as you are more likely to die younger) and they guarantee the income til you die

So if you live long you are quids in, if not then not. She could get £4500 per year but i would guess it would be less!

Be careful though, you need to look at all the terms, some are index linked, some not.

look here

CountessDracula · 09/10/2007 16:03

sorry just seen your q
An annuity is something you buy
ie you give them £45k and they agree to pay you x amount per annum til you die

Original poster
saythatagain · 09/10/2007 16:04

I think she did look at that CD. Would that have been something she would have to of done when she retired; I seem to recall? Absolutely unknown territory to me.

OP posts:
CountessDracula · 09/10/2007 16:05

no I think you can buy an annuity at any time

Original poster
saythatagain · 09/10/2007 16:05

So you could fib and say you did smoke, were in poor health etc and do quite well out of it? Or am I being thick!!!!

OP posts:
CountessDracula · 09/10/2007 16:06

No, they will ask for a report from her doctor

Original poster
saythatagain · 09/10/2007 16:07

Oh, I see. Thanks. So, is she better staying with the account she has? No pressure intended, just advice really.

OP posts:
claricebeansmum · 09/10/2007 16:09

You would do well to get advice about annuity - sometimes they are a better buy than at other times ie the rates offered. Also should she die you inherit nothing.

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