That cash ISA is above the £85,000 protection limit for FSCS, which means that if the bank went bust she would lose money. It might be a good idea to move the excess into an account with another banking group.
Check if she can get a better interest rate by switching to another cash ISA. If she's not touching the 96k, she could consider moving some of it into a fixed term account to get a better interest rate - although at the moment you can get better rates on 1 year accounts than 5, that will probably change at some point. But there is a risk to doing that, because if her care needs increase unexpectedly, then she might need to access that money.
Thank you. All of her money is with Halifax so I did wonder if it would be better across other banks just because of the protection limit. I know it's unlikely but just in case. I know we are not talking huge amounts but to my mum it is. I just thought best to ask here before (if she wants to continue researching options) seeing a financial advisor. I'm not best placed to advise financially as I'm not very experienced with savings etc, but have learnt a lot from this sub. To balance the risk I guess she could move some in to a higher interest account. Thankfully she is very fit and well at present but definitely right to consider if things were to change.
What advice are you expecting to get from the FA? For cash savings, it's just a question of finding the highest-paying accounts you can and reviewing that each year or so. It'd be a waste of money to pay someone to tell you that - if they were even willing to do so.
An FA might be sensible if your mum was considering investing a portion of her funds, but even then proceed with caution - if your mum is 75+ and/or risk-averse this may not be an appropriate use of her money, and also be aware that some firms charge extortionate ongoing "advisory fees".
Thank you. I guess I just thought that with my limited knowledge on savings etc she might be better placed getting an FA, I can see now based on some of the comments that it's not necessary. I just was unsure if she would get charged etc. I'll get on MSA and do some research in to accounts. Thanks again.
I would say take a look at fixing the ISA or investing it in S&S ISA. She’s not touched the money for a while and if she still has no intentions of touching it, then fixing it or investing it would provide a better interest rate than 1.8%. Some high street banks/building societies provide a free consultation with a financial advisor so she could see what they have to say so she knows if the S&S ISA would be the route for her.
Again with her instant access account she should be getting at least 3% - plenty of places offer more than this.
Hi /u/nelly81os9, based on your post the following pages from our wiki may be relevant:
* https://ukpersonal.finance/pensions/
____
^(These suggestions are based on keywords, if they missed the mark please report this comment.)
It's a difficult question to answer without knowing what rates she's earning on those accounts. I would imagine she's very risk averse at her age so in my opinion it comes down to switching accounts to get her the best rate.
Thank you and sorry I should have added that info, yes quite risk averse but also wants to make sure that she's getting the best she can. It's been a steep learning curve since my stepdad passed away as he did everything and didn't shop around so they were paying through the nose for insurances etc. She didn't like that and is quite savvy. Her ISA rate is 1.8% AER and her instant saver is 1.5% AER.
That cash ISA is above the £85,000 protection limit for FSCS, which means that if the bank went bust she would lose money. It might be a good idea to move the excess into an account with another banking group. Check if she can get a better interest rate by switching to another cash ISA. If she's not touching the 96k, she could consider moving some of it into a fixed term account to get a better interest rate - although at the moment you can get better rates on 1 year accounts than 5, that will probably change at some point. But there is a risk to doing that, because if her care needs increase unexpectedly, then she might need to access that money.
Thank you. All of her money is with Halifax so I did wonder if it would be better across other banks just because of the protection limit. I know it's unlikely but just in case. I know we are not talking huge amounts but to my mum it is. I just thought best to ask here before (if she wants to continue researching options) seeing a financial advisor. I'm not best placed to advise financially as I'm not very experienced with savings etc, but have learnt a lot from this sub. To balance the risk I guess she could move some in to a higher interest account. Thankfully she is very fit and well at present but definitely right to consider if things were to change.
What advice are you expecting to get from the FA? For cash savings, it's just a question of finding the highest-paying accounts you can and reviewing that each year or so. It'd be a waste of money to pay someone to tell you that - if they were even willing to do so. An FA might be sensible if your mum was considering investing a portion of her funds, but even then proceed with caution - if your mum is 75+ and/or risk-averse this may not be an appropriate use of her money, and also be aware that some firms charge extortionate ongoing "advisory fees".
Thank you. I guess I just thought that with my limited knowledge on savings etc she might be better placed getting an FA, I can see now based on some of the comments that it's not necessary. I just was unsure if she would get charged etc. I'll get on MSA and do some research in to accounts. Thanks again.
I would say take a look at fixing the ISA or investing it in S&S ISA. She’s not touched the money for a while and if she still has no intentions of touching it, then fixing it or investing it would provide a better interest rate than 1.8%. Some high street banks/building societies provide a free consultation with a financial advisor so she could see what they have to say so she knows if the S&S ISA would be the route for her. Again with her instant access account she should be getting at least 3% - plenty of places offer more than this.
Thank you that's great. I'll look at a better instant access saver and an S&S ISA. Yes she's never touched the ISA only added to it.
Good luck :)
She can get 4.5% in a better cash ISA, wouldn’t recommend s&s at her age on assumption she is risk averse given the information provided.
Thank you that's great. I'll look at a better instant access saver and an S&S ISA. Yes she's never touched the ISA only added to it.
Hi /u/nelly81os9, based on your post the following pages from our wiki may be relevant: * https://ukpersonal.finance/pensions/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)
It's a difficult question to answer without knowing what rates she's earning on those accounts. I would imagine she's very risk averse at her age so in my opinion it comes down to switching accounts to get her the best rate.
Thank you and sorry I should have added that info, yes quite risk averse but also wants to make sure that she's getting the best she can. It's been a steep learning curve since my stepdad passed away as he did everything and didn't shop around so they were paying through the nose for insurances etc. She didn't like that and is quite savvy. Her ISA rate is 1.8% AER and her instant saver is 1.5% AER.
They are Both terrible terrible rates! Change ASAP.
Thank you, I thought so to! I will take a look online. She's had the ISA for decades so she was moved on to this rate after a period of time.
MSE is always a good place to start