£500K Savings

mindyourlanguage

Hello

My father in law does'nt know what to do with his savings. He has £500K and is planning on moving the whole lot abroad to an Indian Bank. He thinks it'll be safer there.

I have been trying to persuade him not to and am hoping someone on this site can help.

going2die_rich

I think for sums of that money your father-in-law should really see a Financial Advisor. Tell him thats what these people make lots of money for and it's best to use people that have the business knowledge. Hopefully they'll help him make a wiser choice than trusting an indian bank which no doubt has very little rules and regulations, not to mention it's quite corrupt so if something was to happen to that money you'd no doubt never see a penny of it again as they wouldn't have any pressure on them to find it.

I'd say for now, stick it in Northern Rock. It's owned by the government, so unless he can see our entire economy collapsing, I think the money is safe enough there.

Don't let him get talked in to the stock market right now, just keep it in cash. Much safer right now.

mindyourlanguage

going2die_rich wrote: »

I think for sums of that money your father-in-law should really see a Financial Advisor. Tell him thats what these people make lots of money for and it's best to use people that have the business knowledge. Hopefully they'll help him make a wiser choice than trusting an indian bank which no doubt has very little rules and regulations, not to mention it's quite corrupt so if something was to happen to that money you'd no doubt never see a penny of it again as they wouldn't have any pressure on them to find it.

I'd say for now, stick it in Northern Rock. It's owned by the government, so unless he can see our entire economy collapsing, I think the money is safe enough there.

Don't let him get talked in to the stock market right now, just keep it in cash. Much safer right now.

Thanks for the advice, I will make him read it and hopefully it will change his mind.

At the moment his saving are in HBOS

dunstonh

My father in law does'nt know what to do with his savings. He has £500K and is planning on moving the whole lot abroad to an Indian Bank. He thinks it'll be safer there.

So, he thinks that currency fluctuation and an emerging economy with lower regulation is a safer bet?

ed123_2

...with the compensation limit expected to go to 50k, I would advise splitting it into ten banks/b soc, bit of a pain, but more of a pain if he losses 450k- state bank of India 7.5%, Icesave 7.06%, Kaupthingy 7.15%, ICICI 7.2%, Firstsave 7.1%, Anglo irish 7.05%, Postoffice 7.05%, NSi-inflation linked rpi + 1%, premium bonds...........

Entertainer

You need to have a good talk to your father in law and make him see sense. You are covered for up to £35,000 by the government per bank (and the government has intimated that it will extend that at the time of Northern Rock.) Just split the money into £100k per bank and spread the risk if he is that worried which he shouldn't be. You can still get market leading rates in five different banks- a bit more work though, moving it around when they inevitably shrink their rates.

mindyourlanguage

ed123 wrote: »

...with the compensation limit expected to go to 50k, I would advise splitting it into ten banks/b soc, bit of a pain, but more of a pain if he losses 450k- state bank of India 7.5%, Icesave 7.06%, Kaupthingy 7.15%, ICICI 7.2%, Firstsave 7.1%, Anglo irish 7.05%, Postoffice 7.05%, NSi-inflation linked rpi + 1%, premium bonds...........

Bit of a pain but a least it'll be there if the worst happens