Is it safe to invest more than £50,000 in National savings?

Jayne43

My mum has moved into sheltered accomodation and has £90,000 to invest but needs an income to pay her rent. NSI offers a good monthly income product at 4.1% but we are not sure if it's wise to put it all into national savings with the Government guarantee at £50,000. however as NSI are Government owned would it be ok to put it all into NSI?

Nick_C

Yes - totally.

cheerfulcat

Hi, Jayne,

Well, according to NS&I " Because National Savings and Investments is backed by HM Treasury, you can rest assured that all your capital is 100% secure, however much you invest. "

I guess it depends on how much you trust HM Treasury...

atypical

You pay for this protection in the form of lower interest rates though.

Perhaps your mother could open a joint account elsewhere where she is likely to get a better rate whilst still having the security of £100,000 FSA protection? Provided she has someone suitable to open a joint account with.

dunstonh

Has she considered care annuities?

withnell

cheerfulcat wrote: »

I guess it depends on how much you trust HM Treasury...

As NS&I deposits are invested in the treasury, they are as safe as sterling itself - in the v v v v v v unlikely occurence of the government not having the money needed to pay the investments back, they can print more money, devaluing the currency - and in that case devaluing the amount held by everyone in the country

So sum it up - in NS&I is safer than under the mattress (cos no one can nick it) :j

Lansdowne

atypical wrote: »

You pay for this protection in the form of lower interest rates though.

Not Sure that applies to the Guaranteed Growth/Income Bonds at 4.1/4.2 % they are significantly better than much of the rest of NS&I

456789

cheerfulcat wrote: »

I guess it depends on how much you trust HM Treasury...

So thats a no then :rotfl:

cheerfulcat

456789 wrote: »

So thats a no then :rotfl:

You might say that - I couldn't possibly comment.