£60,000 to invest

Munkeey · 6 September 2006 at 6:30PM

Hello
First post here so I hope someone can help.
We will shortly be receiving a cheque for £60,000 to save/invest for the wife’s mother.
Where would be the best place to invest this money so it will have a good interest rate and will be easy to get instant access?
We are both in our mid 40`s.
Regards

dunstonh · 6 September 2006 at 10:05PM

invest or save?

ReportInvestor · 6 September 2006 at 10:07PM

for or from?

anniecave · 6 September 2006 at 10:25PM

I'd recommend an instant access internet savings acccount. Like for example
birmingham midshires online saver (I think it's called this)
icici bank hisave
yorkshire building society internet saver
If you don't want or don't do online, then the Post Office has an instant saver, which you can pay in and out via the post office, as well as over the internet if you want.
As you've got quite a lot to save, I would spread your money between two or three providers, so you'll get most of your money back by the financial compensation people if any banks go bankrupt.
Alternatively you could go for a fixed rate term account.
Try https://www.moneysupermarket.com/savings and put your details in and they will give you some ideas.
Keep an eye on the rates though, obviously they change, so after a few months it might be worth moving around.

Munkeey · 7 September 2006 at 8:06AM

ReportInvestor wrote:

for or from?[/QUOTE

Investing/saving on behalf of the wifes mother.

katieowl_2 · 7 September 2006 at 8:55AM

anniecave wrote:

As you've got quite a lot to save, I would spread your money between two or three providers, so you'll get most of your money back by the financial compensation people if any banks go bankrupt.

I am loooking to do a similar exercise for an elderly friend I have Power of Attorney for... a bit more than £60K. DH and I had already decided that it was best to spread it about - when you say covered by financial compensation people, do you know what sort of sum we should have in each account to be covered?

The money is in one place at the moment (I am actually going to see them later today!) regarding moving it from a current account to one that pays interest, and my friend has a Bld Soc account with Abbey who WILL NOT sort out the POA (but that is another story) I asked in my bank about opening a savings account, but because of the money laundering regs, as my friend who is 86 (and in a care home) does not have a passport or driving license they say they can't do it - so I am obviously going to have problems....

I was going to try Woolwich, but they are part of Barclays, where the current account is...so basically the same institution?

Any suggestions would be gratefully recived

Regards

Kate

dunstonh · 7 September 2006 at 9:38AM

Investing/saving on behalf of the wifes mother.

Which is it though. Investing or saving?

Saving indicates saving accounts. Investing would involve (usually) risk based products and a longer term.

At this moment in time, we could list around 10,000 products which could be suitable so we need some help filtering the options and giving you some information.

Sapphire · 7 September 2006 at 10:25AM

katieowl wrote:

I am loooking to do a similar exercise for an elderly friend I have Power of Attorney for... a bit more than £60K. DH and I had already decided that it was best to spread it about - when you say covered by financial compensation people, do you know what sort of sum we should have in each account to be covered?

I asked in my bank about opening a savings account, but because of the money laundering regs, as my friend who is 86 (and in a care home) does not have a passport or driving license they say they can't do it - so I am obviously going to have problems....

Kate

In response to your first para, to be covered by the FSA regulations you would need to have not more than about £30,000 in each account - that means you would be compensated should anything go wrong with the company with which you are saving.

I don't know the answer to the question in your second paragrah - would be interested to know the answer myself.

Sapphire · 7 September 2006 at 10:31AM

dunstonh wrote:

Which is it though. Investing or saving?

Saving indicates saving accounts. Investing would involve (usually) risk based products and a longer term.

At this moment in time, we could list around 10,000 products which could be suitable so we need some help filtering the options and giving you some information.

I would have thought that if you are putting money into a savings account or ISA and holding it there in order to earn money for yourself, that is an investment - a low-risk investment to be precise.

Oxford Dictionary definition: 'a thing worth buying because it may be profitable or useful in the future'. :cool:

ReportInvestor · 7 September 2006 at 10:31AM

Under the Financial Services Compensation Scheme:

You are covered for all of the first £2,000.
And 90% of the next £33,000.

So £35K is what some cautious savers limit themselves to.

I would agree with dh that this is saving, not investing.

Sharia Law also discriminates between saving & investing along dunsthonian lines - BBC link

Chrismaths · 7 September 2006 at 11:03AM

I would have thought that if you are putting money into a savings account or ISA and holding it there in order to earn money for yourself, that is an investment - a low-risk investment to be precise.

Oxford Dictionary definition: 'a thing worth buying because it may be profitable or useful in the future'.

I think you've answered your own question - you can't "buy" a savings account, it is cash, which is a means of payment, not an investment. You can't pay for something with a BP share, you have to sell it to create cash, a means of payment. Saving is cash, investing is something else.

£60,000 to invest

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