Martin Lewis highlights best options as pensioner told £15,000 of his savings aren't safe

3 mins read

Tony, 79, explained he currently has £100,000 sitting in Lloyds Bank and the full £50,000 amount of Premium Bonds for himself and his wife. For tax reasons, the pensioner has been giving his two children £3,000 a year.

“You’ve actually got over the safe saving limit of £85,000 so I want you to split the money into two accounts.”

Martin explained this could be done in various ways such as splitting it in half, so £50,000 in each account, or £85,000 in one and £15,000 in the other.

“Then all of your money is protected by the Financial Services Compensation Scheme guarantee.”

He went on to highlight some of the savings accounts offering the highest rates of interest at this time.

“The top easy access account (you get your money out of) is Cynergy at 0.66 percent or Marcus [by Goldman Sachs] – 0.6 percent.

“It’s certainly better than you’re earning.”

The financial journalist also addressed options when it comes to fixed interest rates accounts.

“Right now fixed rates – where you lock in the interest rate for a year or two – have come right back. They’ve doubled what they were six months ago.

“The top payer for one year is Zopa at 1.36 percent and there’s Masthaven at 1.65 percent for two years.”

It is possible to give away a total of £3,000 worth of gifts each tax year without them being added to the value of an estate.

This is known as the “annual exemption” and it is a way of giving away money or possessions free of Inheritance Tax.

This Morning airs weekdays on ITV from 10am.

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