Over 60's "Safe" place to save

cuzza

Hello all, first post so please excuse my ignorance.
I am trying to help out my parents who have approx £60k to invest and don't mind doing so for 5 years. My parents are careful with money hence ending up with this cash. They are both 62 and until recently my dad was working but now is not and can't get another job and doesnt receive any benefits as was self employed for a large part of his career. They have enough other money\Mams pension income to survice for 5 years hence being able to tie the money up if necessary.
They have spoken to a financial advisor who has basically blinded them with science and left them confused.
They don't want to take any risk with this money so I have suggested the NS & I Savings Certificates, which while they don't seem to give a great rate of interest at least it is tax free and as safe as you can get. I have read an earlier post about the above but I don't really know what else to look at to compare them to as there isnt anything else tax free as far as I can see (tax free savings is not a requirement).
Are there any good websites which deal in savings and investements for the over 60's who want a low risk guaranteed return?
Any help appreciated.

Baldur

Being of a certain age myself, I wouldn't get too hung up on the 'over 60s' bit - there are some reasonable offers for over 50s/60s but there are also many which are poorer than non age-specific products.

Have a look at some of the comparison sites for a start, such as the FSA's 'Savings Made Clear', Moneyfacts & Money Supermarket.

JimmyTheWig

As long as they have less than £50k each in any one institution then it will be perfectly fine.
The only risk is that if their chosen institution goes belly up then they might have to wait months for their money. But if they don't need it for years then they can cope for a few months.

Filling up their cash ISAs is probably a good start. This would be £3600 each this year.
Do either of them pay income tax? If one does and the other doesn't then it makes sense to hold savings in the name of the one who doesn't pay tax. If you are doing this then you need to split the money across two institutions as it would mean one person with more than £50k.
The same is true if one pays higher rate and the other pays basic rate.
But if they pay the same tax then they may as well hold the money jointly and they don't have to worry about anyone going bust.

thrupence

cuzza wrote: »

Hello all, first post so please excuse my ignorance.
I am trying to help out my parents who have approx £60k to invest and don't mind doing so for 5 years. My parents are careful with money hence ending up with this cash. They are both 62 and until recently my dad was working but now is not and can't get another job and doesnt receive any benefits as was self employed for a large part of his career. They have enough other money\Mams pension income to survice for 5 years hence being able to tie the money up if necessary.
They have spoken to a financial advisor who has basically blinded them with science and left them confused.
They don't want to take any risk with this money so I have suggested the NS & I Savings Certificates, which while they don't seem to give a great rate of interest at least it is tax free and as safe as you can get. I have read an earlier post about the above but I don't really know what else to look at to compare them to as there isnt anything else tax free as far as I can see (tax free savings is not a requirement).
Are there any good websites which deal in savings and investements for the over 60's who want a low risk guaranteed return?
Any help appreciated.

Coventry are offering 6.60% to over 60s.

http://www.coventrybuildingsociety.co.uk/savings/sixtyplus.aspx

Their business model seems to be one of the safest according to Moneymail.

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=455447&in_page_id=7

Alliance & Leicester are offering 6.60% to everyone, with severe withdrawal restrictions, but the chance to win £10,000 on 31/12/2008.

http://www.alliance-leicester.co.uk/savings/index.aspx

cuzza

Thanks for the advice so far.
My Mother may pay a small amount of tax from here pension but with my father being out of work he is not earning anything at all at the moment.
Their cash ISA's are at their max and the rest of their money is currently with BBBS but they can afford to put this £60k somewhere for 5 years (and still live as they currently do from their other savings) and would like to see a better return than they are getting if possible albeit without risk.
Once again any further help\advice appreaciated.

evenasus

Norwich & Peterborough BS have one which is easy access, no penalties and a good rate. I opened one myself last month, was up and running within a week and I didn't have to send any ID documents to them either.

http://www.npbs.co.uk/savings/e-saver.asp