Where`s best to put my savings?????????

leefire

Im pretty new to this but have had alot of help from other Moneysavers.
My Father and mother have sold there house and have £200000. They have moved in with my sister and are hoping to move house in around 6 months to see if the house prices drop a little. Where is the best place for them to put there money, so it is protected.? He currently has £120000 in Lloyds and some in Premium bonds. Hes worked hard all his life and is now 6o. I`d hate to see them lose money if the banks go bump. All help would be much appreciated.

Doomcow

split it betweens isa's and make sure the cash is split between various instituions.

specifically is he wants to keep it safe.

£50k max in each institution, and keep it out of stocks n shares etc etc. if you access to the cash easy.

caveman38

We are all ears. I like many (not wishing to hijack your post) have got similar amounts invested in said banks. In light of todays news / share price and possible nationalisations have got concerns.
Can it get to the position where the £50K guarantees can be reneged on?

leefire

I dont mind you hijacking, and thanks for the comments. ARE Isa as safe as a bank or building society.?

Mike1989

Well I'll take it you have £320,000. As it doesn't really matter on amount in theory.

- Northern Rock offer 3.75% on a 1 year fixed rate bond. You could put £50,000 in there.
- Barclays offer 3.20% on their 1 year fixed rate bond. Put £50,000 in that account.
- Yorkshire Bank offer 3.20/.25 either or on a 1 year fixed rate bond. Put £50,000 in that account.

And so on and so forth. Put £50,000 in different fixed rate or variable savings accounts in different banks. That way the money would be covered under the 50k rule. As its safer to be like that than to have more than that in one bank because only 50k is covered.

split it betweens isa's

Can only have one cash ISA each year. So he is best looking at fixed rate bonds or savings accounts.

caveman38

leefire wrote: »

I dont mind you hijacking, and thanks for the comments. ARE Isa as safe as a bank or building society.?

ISA's are still only savings, but with the exception that they are tax free. Cash ISA's only have a limit of depositing £3,600 per tax year and are offered by the banks and BS's. They still fall in the £50K guarantee per banking institution.

leefire

I think I read somewhere about some banks being part of institutions and if you have money in both bank you will only be covered on one of them upto £50000 is this correct.?

juicyjude

If you look at this site Martin has a section on "Are your savings safe" and the various mergers etc and which counts as one institution, and which are stand alone are there for all to see on a colour coded table. Very easy to follow.Hope this helps.

withnell

If your dad is a higher rate taxpayer, then he can have 100% safety in NS&I Income bonds for the whole amount at just under 5% equivalent, but would have to be tied up for a bit longer than 6months tho.

rb10

juicyjude wrote: »

If you look at this site Martin has a section on "Are your savings safe" and the various mergers etc and which counts as one institution, and which are stand alone are there for all to see on a colour coded table. Very easy to follow.Hope this helps.

http://www.moneysavingexpert.com/savings/safe-savings#whatcounts