£20k need to invest

jeffy22

my dads got bit of a windfall £20k which we would like to invest with maximum return
he may want to dip into it now and again as he's retired.. wheres the best place to put it these days?

sorry but we are completely clueless at these thing

dunstonh

around 50,000 things fit that criteria. You are going to have to narrow it down more. Taxation (inc credits, closeness to age allowance reduction), risk profile, income/growth requirements. aims and objectives, how and where he would purchase (as not all options are available on all distribution channels) plus more.

a7man

its not a very good idea to ask for advice on a forum if you have v limited knowledge of financial products. I would go to see an IFA, it will save/ generate more money for the future.

Doomcow

To make it simple, i'd maybe put 3600 into this years cash isa allowance, and then put 5400 into a bond or something like an e-bond from yorkshire / nationwide building society

put the rest in a reasonable instant access acct if he is going to use it and doesnt want to lock it away for a year - again, YBS / maybe northern rock / intelligent finance would be a provide a good simple service. (least they have for me).

no point in putting money at risk just for a "greater return" and have the associated "worry" and making it more complicated than necessary.

bear in mind this is that growth isnt an issue and you just want to supplement pension occasionally.

a7man

Yes but people have different attitudes, I would hate to put a large amount of money in a low interest account when I have to potential to make it work for me & provide more for the future.

nzseries1

The OP states maximum return. Therefore, I would suggest the National Lottery.

dunstonh

Doomcow wrote: »

To make it simple, i'd maybe put 3600 into this years cash isa allowance, and then put 5400 into a bond or something like an e-bond from yorkshire / nationwide building society

put the rest in a reasonable instant access acct if he is going to use it and doesnt want to lock it away for a year - again, YBS / maybe northern rock / intelligent finance would be a provide a good simple service. (least they have for me).

no point in putting money at risk just for a "greater return" and have the associated "worry" and making it more complicated than necessary.

bear in mind this is that growth isnt an issue and you just want to supplement pension occasionally.

And how are you able to give that advice based on what has been said so far?

The OP says his father is retired, so its likely he is over 65. What if his income is near £21k a year? Youre recommendation has just increased his tax bill by nearly £1000 because his age allowance has been wiped out.

How do we know if the fixed term deposit you mention first the timescale for the capital?

The OP says invest but you have only listed savings options.

I dont want to have a dig at what you are saying but you have only said what you would do. That could be totally the wrong thing for the OPs father. It doesnt matter what you would do. It matters what he should do that suits his requirements and needs.

Doomcow

dunstonh wrote: »

I dont want to have a dig at what you are saying but you have only said what you would do. That could be totally the wrong thing for the OPs father. It doesnt matter what you would do. It matters what he should do that suits his requirements and needs.

the OP asked where the best place to put it, and in my opinion that would be the best place to put it, answering their question.

i was providing a simple no-nonsense solution, based on the OPs wide ranging requirements. for someone who is retired and wouldnt want their capital at risk who possibly has no "back-up" savings, just wildly investing the whole 20k in funds, bonds, stocks, and fixed term accounts is just crazy.

theres no point in coming out with all this technical jargon to someone who is "clueless" about saving / investing - the term may have been used in error - so theres more than just investing to consider in this situation. also this is a saving & investing forum, not just an investing.

a solution cant positively be found unless the OP defines his requirements though, although they will probably need to know more before they can truely get that.

a7man wrote:

Yes but people have different attitudes, I would hate to put a large amount of money in a low interest account when I have to potential to make it work for me & provide more for the future.

yes people do have different attitudes, but surely a lower interest account would be better and protect the capital, other than investing what they have and loosing a portion of it - do you really want to be loosing money in the twilight years unless you have plenty to spare?

nzseries1 wrote:

The OP states maximum return. Therefore, I would suggest the National Lottery.

psosible, but having stable finances would probably be more rewarding (unless you won of course... and lets face it, 20k tickets....)

a7man

There are so many assumptions in your answer - he wants to dip into it now and again, this suggests he has a good enough pension to cover every day expenses. He might already have £50k in a current account.

Although generally funds should be considered only in the long term, right now is an uncanny time where if you can leave the money for 3 years plus your are highly likely to get a good positive return.

Just because some products are more complex it doesnt mean they should be discounted.

jeffy22

thank you for the responses
, he has no other savings, he just is on pension credits but has paid off his mortgage and has no other debts (he's 61) no dependants
we just want to know the best (no risk) high interest saving account

jeffy22

My father is now talking about premium bonds.. are they safe?