We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

gonna look after about £60000

i'm going to be looking after about £60000 for my uncle (just to stop him over spending etc) its from a house he sold
he's no good with money and dont want to see him losing it all.
however i'm looking for the best place to put it.
i was considering £50000 in premium bonds and the other £10000 in a savings account for emergency purposes.
what would you guys recommend? is this a stable good idea

i dont think hes interested in the returns anyway

Comments

  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    It's an idea, certainly.
    Except... any one person is not allowed to hold more than £30,000 in Premium Bonds.
    If he doesn't care too much about returns then yeah Premium Bonds are a good idea, hey if you win £1,000,000 you could split it with him!!
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    As a safe home premium bonds are fine (but see max allowance above), with the added excitement offered by the chance of a big win (about equal to you guessing my phone number; go on, give it a go!).

    There are other options for higher guaranteed growth (3+%) while still retaining safety - eg some of the savings accounts still around (ING? Investec? ) so why not mix n match a bit more.

    But it also depends how long you/he are considering this for? Will he need to buy another house or are you looking to stash this away for the next 10 years? his retirement? whatever... in which case drip feeding some into the stock market (eg via funds) over the next 6 months might make sense. The stock market has never been lower (well, not for ages) which is always a good time to buy (NOT sell!), though only if you are looking long term.
  • theGrinch
    theGrinch Posts: 3,133 Forumite
    Part of the Furniture 1,000 Posts
    i have never seen the attraction of premium bonds. I am sure I am not alone.

    you havent said how long you were thinking of putting it away or when the money, in part or whole would be needed.
    "enough is a feast"...old Buddist proverb
  • JoeCrystal
    JoeCrystal Posts: 3,249 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Me neither. Not mentioning since the interest rate is so low, the amount of prize draws is tiny.
  • D1zzy
    D1zzy Posts: 1,500 Forumite
    theGrinch wrote: »
    i have never seen the attraction of premium bonds. I am sure I am not alone.

    you havent said how long you were thinking of putting it away or when the money, in part or whole would be needed.

    £50 for the shoe fund most months -plus the fun (sad!!) of checking each month to see if there's a bigeee -makes a change from updating spreadsheets with falling interest rates
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    Agreed. I never saw the attraction of premium bonds... until now with such low interest rates. I'm not sure I'll notice the lack of a steady 2% of interest build up, and the possibility to win a million and still get my money back!
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • theGrinch
    theGrinch Posts: 3,133 Forumite
    Part of the Furniture 1,000 Posts
    premium bonds - where the government get rich and the poor get excited. discuss :)

    Im more inclined to put 30% into a fixed deposit and 30% into shares through regular purchases spread over the year - even a tracker fund.
    "enough is a feast"...old Buddist proverb
  • ginjim
    ginjim Posts: 10,078 Forumite
    Well i have n idea when he will need the money i am just looking after it for him so he doesnt blow it on some tart in thailand.
    he might need the money maybe drip fed but he has a pension coming too
    im just looking for a place where it hopefully be secure and if he needs help at all or things fal flat on his face he can get it back.
  • Whatever you decide to do, remember that only £50,000 is guaranteed by the FSCS (compensation scheme) per person per institution.

    Personally, I'd put £50,000 in the highest paying savings account, whether you want to lock it away for 1 or more years or have instant access is up to your own personal circumstance. As a general rule the following gives the best rates (for cash savings):

    Cash ISA £3,600 per year per person (only consider if you do or will be paying tax as this generally beats savings that you pay tax on)

    After this, save in a regular savings account that offers a higher rate than a standard savings account as long as you contribute a set amount each month. (note if you have a lump sum, put all the amount, less ISA, in a top standard account, then drip feed each month into a regular saver)

    After the regular savings threshold, put the rest in a top standard savings account.

    Most importantly (but boringly) check the restrictions on all of your accounts, some have penalties for withdrawing cash, some only offer the best rates over certain thresholds.
    Mortgage £120K, monthly overpayment £600, 18 years and £100K saved
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617.1K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.