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    • dunstonh
    • By dunstonh 6th Sep 06, 10:05 PM
    • 81,053 Posts
    • 46,324 Thanks
    dunstonh
    • #2
    • 6th Sep 06, 10:05 PM
    • #2
    • 6th Sep 06, 10:05 PM
    invest or save?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • ReportInvestor
    • #3
    • 6th Sep 06, 10:07 PM
    • #3
    • 6th Sep 06, 10:07 PM
    for or from?
    • anniecave
    • By anniecave 6th Sep 06, 10:25 PM
    • 2,107 Posts
    • 663 Thanks
    anniecave
    • #4
    • 6th Sep 06, 10:25 PM
    • #4
    • 6th Sep 06, 10:25 PM
    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 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.
    Indecision is the key to flexibility.
  • Munkeey
    • #5
    • 7th Sep 06, 8:06 AM
    • #5
    • 7th Sep 06, 8:06 AM
    [QUOTE=ReportInvestor]for or from?[/QUOTE

    Investing/saving on behalf of the wifes mother.
  • katieowl
    • #6
    • 7th Sep 06, 8:55 AM
    • #6
    • 7th Sep 06, 8:55 AM
    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.
    by anniecave
    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
    • By dunstonh 7th Sep 06, 9:38 AM
    • 81,053 Posts
    • 46,324 Thanks
    dunstonh
    • #7
    • 7th Sep 06, 9:38 AM
    • #7
    • 7th Sep 06, 9:38 AM
    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.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • Sapphire
    • By Sapphire 7th Sep 06, 10:25 AM
    • 1,507 Posts
    • 2,691 Thanks
    Sapphire
    • #8
    • 7th Sep 06, 10:25 AM
    • #8
    • 7th Sep 06, 10:25 AM
    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
    by katieowl
    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
    • By Sapphire 7th Sep 06, 10:31 AM
    • 1,507 Posts
    • 2,691 Thanks
    Sapphire
    • #9
    • 7th Sep 06, 10:31 AM
    • #9
    • 7th Sep 06, 10:31 AM
    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.
    by dunstonh
    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'.
  • ReportInvestor
    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
    Last edited by ReportInvestor; 07-09-2006 at 10:36 AM.
  • Chrismaths
    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.
    • Sapphire
    • By Sapphire 7th Sep 06, 5:08 PM
    • 1,507 Posts
    • 2,691 Thanks
    Sapphire
    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.
    by Chrismaths
    Disagree.

    Savings accounts are sold as 'investment products' to customers (as I know only too well from being harassed by Lloyds Bank for many months to open savings accounts with them, which ultimately made me leave that bank). You also have to 'cash in' your savings as a means of payment, i.e. in order to access the money, as you do if you are dealing in shares. If you put money into a savings account (or ISA) in order to get a percentage interest from it, it is an investment. It's also counted as such when suggesting to people how to 'invest' their money.

    In any case, all this is nitpicking - they are both ways of making money (or sometimes losing it in the case of shares).
  • ReportInvestor
    For me, saving is when you don't expect your original capital to grow, or (unless there is a banking crisis) shrink. (No-one has lost any money in a UK building society since WW 2.)

    Investment is when you expect your capital to fluctuate, hopefully on the upside.

    On this board when people say "save" they mean it
    When they say "invest/save" they mean "save"
    When they say "invest" they can mean "invest or save".

    It's worth keeping the distinction, because it means our hard-working IFA doesn't have to waste his time on the savings threads.
  • EdInvestor
    Investment involves risk to capital.

    Savings means capital is guaranteed.

    The issue has been blurred by both the banks and the media : the absolute worst example is the word "bond" which is applied to numerous products ranging from nil to high risk.

    The misselling associated with the misuse of the term "bond" is IMHO more disgraceful than that related to endowments and pensions, because the victims tend to be retired people who have lost money they cannot easily replace.
  • kenshaz
    Why not answer the question,instead of discussing word meanings ---------
    ICICI for half and Halifax web saver for the other half
    ---almost forgot Minus £3000 each in a national savings ISA--actually if you did that £35000 in ICICI----- Halifax websaver £19000 and of course £6000 national savings ISA
    Last edited by kenshaz; 07-09-2006 at 5:52 PM.
    To be happy you need to make someone happy.

  • Munkeey
    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.
    by dunstonh
    Perhaps the word invest was not the best of choices.
    We really are looking to save this money so she has easy access to whatever sums she wants but also an account or accounts that gives the best returns.
    • Sapphire
    • By Sapphire 7th Sep 06, 11:49 PM
    • 1,507 Posts
    • 2,691 Thanks
    Sapphire
    Perhaps 'making money' would be best as a blanket term for everything.
  • ReportInvestor
    Savers who keep up with inflation after tax are a minority - outside MSE of course . So is it even right to say that they are "making money"?

    Mind you, loads of investors have done as badly or worse over the last six years.

    To Kate
    I was going to try Woolwich, but they are part of Barclays, where the current account is...so basically the same institution?
    by katieowl
    That would solve account opening difficulties & I sympathise with your awkward problem.

    Woolwich do a fixed rate bond for 3 years @ 4.5% (but you're losing a full 1% compared to Skipton BS or Halifax ).

    The Woolwich branch saver pays 3.95% on £50K and 4.15% on £100K. Again, quite a significant loss of interest compared to the open market on the sums you're dealing with.
    Last edited by ReportInvestor; 08-09-2006 at 6:24 AM.
  • davidtopps
    hello!

    seeking quick advice! Someone from my family inherited 60.000. He is 55 years old and said he is looking for risky investment. so he has high risk tolerance.

    the money should be invested over 3 years. any suggestions on 2-3 financial products?

    thank you in advance!!

    dave
    • dunstonh
    • By dunstonh 15th Dec 09, 4:04 PM
    • 81,053 Posts
    • 46,324 Thanks
    dunstonh
    hello!

    seeking quick advice! Someone from my family inherited 60.000. He is 55 years old and said he is looking for risky investment. so he has high risk tolerance.

    the money should be invested over 3 years. any suggestions on 2-3 financial products?

    thank you in advance!!

    dave
    Originally posted by davidtopps
    3 years = Cash savings unless he really is high risk (potential for say 50-60% loss in 12 months)
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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