Confused!!

Buster23

My Dad has just turned 65 and now his private pension has matured, trouble is, he doesn't know how best to save the money.

He went to his bank who talked to him about bank bonds :huh:, does anyone know more about these and are they the best place to put his money?
Or has anyone else got a suggestion where best to save with a good intrest rate?

Thanks for your help

Lokolo

Bank bonds aren't really the best description.

Are they talking about investments or savings?

McKneff

It would be easier if you could post amounts to be saved/invested

Buster23

He got a lump sume of £15,000. Not sure if it's savings or investments he's got an appointment on Tuesday with the bank. Just worried that he signs up for this and he looses the lot!!

Lokolo

Ok it will be an investment then. They like to flog in banks

How long does he want to keep the money tied up for?

Buster23

prob 5-10 years

McKneff

Tell him not to sign anyhting and to just bring any paperwork home with him.
The bank will just try to sell him their own products.

He really could do with seeing an independant financial adviser.

If he wants to save and have no tax on interest there are ISAs, he can put quite a lot of it in there. Is mum around (sorry) but she could also have tax free ISAs.

Good luck

and regards to moneybags;)

McKneff

I reach retirement age in October and will get a similar lump sum. I wont look for any advice.
youre a long time dead and i will buy a newish car, whatever is left will be shared between my two children. i would like to see them enjoy it now rather than they have it when i have popped my wotsits.
Can't wait.

Buster23

My Mum has an ISA already, excuse my ignorance, but I thought you could only save £3.600 a year in an ISA? Or are there other ones available? I think it would make more sense for him to put it into something with a fix rate of intrest, then you know exactly what you are getting each year, he says that the intrest rate varies with bank bonds. Do you know if they work the same way as premium bonds?

Thanks for taking the time to answer my questions :beer:

McKneff

You can put £3,600 in a cash Isa and £3,600 in a Stocks and shares ISA

The amounts go up in October for people over either 50 or 55, i forget.

Dont know much about bonds but from personal experience there are management charges annualy involved. i cant advise you at all i can only say what i do personally. Fixed rates are fine and like you say you know exactly what you will get, but it'll be annoying if you fix at say 4% and other non fixed end up rising to5/6% or even more. Last year in My ISA i started off at 6.25%
admittedly it went down to 2%:eek: but just trying to illustrate that interest rates can go up to that much.

Buster23

McKneff wrote: »

I reach retirement age in October and will get a similar lump sum. I wont look for any advice.
youre a long time dead and i will buy a newish car, whatever is left will be shared between my two children. i would like to see them enjoy it now rather than they have it when i have popped my wotsits.
Can't wait.

I agree with you, think him and my Mum should go a nice holiday!!