Protection AND inacsessibilty needed

foggytown

Greetings to the Forum,

My sister-in-law has a bit of money (about 30K) presently sitting in a regular savings account. Her intention has been to buy a pension (she's 56) to kick in when she's 63 or so. That was before the present financial climate. I have several views on this.

1. Any pension she buys now isn't going to give her much of an income in 6 or 7 years time
2. AFAIK, typical, private, insurance-based pensions are NOT protected by the government like savings are

When I suggested she might look for strong security over long-term return and sock her money in the highest interest savings account she can find (at least for the immediate future) she told me that she is also concerned about accessibility. She does NOT want to be tempted to "dip in" for any reason in future. Even so-called notice accounts don't offer that much resistance if you really (think you) need all or part of your money.

So, any ideas on where she can stick this money so that it is both protected by the gov't AND inaccessible?

Thank,
FoggyTown

tradetime

ICICI have a 2 fixed rate savings account with 5.57% AER. No early access is permitted. That would keep her tied up for 2 yrs at least. The account is fully covered by the FSCS up to £50k

soulsaver

tradetime wrote: »

ICICI have a 2 fixed rate savings account with 5.57% AER. No early access is permitted. That would keep her tied up for 2 yrs at least. The account is fully covered by the FSCS up to £50k

ICICI also have accounts that can be accessed with penalty, at lower rates... but may suit if you only 'might' need access in emergency for instance.

But I think their is some aspects of this missing that will be material to get the best for her - depending on her tax and employment status - tax relief on contributions, tax free growth- she definitely needs pro advice.
Try an CAB in the first inst or an Independant Financial Advisor...