Mum has 20k to save

Bushboy

My mum (over 60) has 20k which she wants to put away, no risk.
After buyin me something decent are their any decent savings account which will deal with this lump sum? It's sitting in her current account at present earning rubbish interest.

Actually, looking at Martin's articles, it's probably best to use her ISA cash allowance of 3600 but what should she do with the rest?
I'm not sure what she should do?

Any help appreciated
Cheers :beer:

malik999

There is little point now with interest rates like they are. It is important you encourage you mum to spend this 20k on the high street. It will make her feel great having a new warddrobe and will help stimulate the economy. Everyone with savings should be doing this now.

Farway

malik999 wrote: »

There is little point now with interest rates like they are. It is important you encourage you mum to spend this 20k on the high street. It will make her feel great having a new warddrobe and will help stimulate the economy. Everyone with savings should be doing this now.

Sorry but this is utter tosh, given her age she needs to have some "rainy day" money, and the OP asked for a savings account not how to spend it

Does she have any debts firs toff? if so it would make sense to clear them first because the rate for borrowing far exceeds the rate for saving

Can she go online? some of the better rates are on line, and look into bonus accounts, would need to move after a year but some reasonable [given current rates] offers around

I think Martin has link somewhere to "best buy" saving rates

Bushboy

malik999 wrote: »

There is little point now with interest rates like they are. It is important you encourage you mum to spend this 20k on the high street. It will make her feel great having a new warddrobe and will help stimulate the economy. Everyone with savings should be doing this now.

hehe, made me laugh malik! You sure you're not Gordon Brown?;)

I look after her debts for her which aren't much and I'd be able to go online for her as well, just thought there would be alternatives to what I've read so far.
Being the older generation she always like a savings book, "summink in 'er 'and" to look at rather than the pc screen but once I show her that better deals are available online I'm sure she'll come round to it.

So better to put a wad of it into one savings account then rather than split it up?

xxtokerxx

^ how big and tuff are you?

Loan shark it out!?

to be honest your best bet would be investing it into something (IMO)

Maybe some property abroad where she can rent it out to pay any remaining payment off?

Only problem there will be no quick access to the cash, but I would rather have my £20,000 earning hundreds a month than earning 800 a year - but guess it's differen situation for your mum

malik999

Farway wrote: »

Sorry but this is utter tosh, given her age she needs to have some "rainy day" money, and the OP asked for a savings account not how to spend it

Woosh!!

Bushboy - I am sure no risk is your main requirement (would be if it was my mum) so £3600 ISA in now for this years allowance. £3600 into the next ISA (April).
This then leaves savings accounts and bonds. I think i would try and find a 12 month fixed term 1 year bond. Interest rates are not going up in the next 12 months assuming she may need some of the money perhaps 10k into a bond and the rest into the best savings account you can find. That's probably what i would do for my mum depending on the current rates around. Rates are changing from week to week so i am not sure what today's best bond or savings account to recommend to you is. hth