Best place for £160k

Financial_Savvy

Hi all,

No I do not have £160k, but I do know somebody that does.

Need absolutely no risk and monthly interest which can be transferred to another account to support day to day living. Can commit the funds for one year.

Any IFA's or clever people out there that can help?

Advice much appreciated. :beer:

ReportInvestor

If your friend is 60+ then

Coventry BS 60+ Saver Issue 2 @ 5.25%

If not

Kent Reliance BS 10 Month 5.02% Tracker Plus Bond (which guarantees not less than 5.0% for the 10 month term .

Both are suitable for monthly interest.

Financial_Savvy

Thanks for the response. They are both over 65

Unfortunatly the Conventry BS 60+ Saver Issue 2 has a max investment of £2K. The Conventry 60 plus bond looks good paying 4.75% AER / 4.65% Gross monthly interest.

I will have a look at the Kent Reliance BS now.

Thanks again

ReportInvestor

4.75% v 5.0% guaranteed is surely no contest?

The Cov account allows £2K investments per month, but if they are wanting to KISS, Keep it simple stupid, then KRBS will be "the one".

The only slight "downer" with KRBS is that it has the lowest reserves of any UK BS - a consideration, I suppose, if you are investing more than £35K and are of a particularly nervous disposition.

Financial_Savvy

Agreed! Although yes very risk averse. The Conventry a/c says:

"The minimum balance is £500 . You can pay in maximum of £2,000 a month (maximum initial investment is also £2,000). The total maximum balance is £250,000."

Thanks

dunstonh

If there are also other earnings, such as pensions, then you need to consider that a deposit based or high yield product could start a reduction in age allowance.

160k put with no risk is a waste of money to be honest. Risk is not an on or off situation. Its a sliding scale and having 160k in a deposit based account carries risk of inflation eating into it and if it does reduce the age allowance, it is really losing money in real terms.

ReportInvestor

dunstonh wrote:

160k put with no risk is a waste of money to be honest.

But the OP stipulated that it was for one year

Financial_Savvy

Hi, the individuals are comfortable with commiting the funds for 1 year, but just don't do risk and therefore any stock market linked product is out.

There are some small pensions as additional income, and I am interested in the reduction of age allowance. They are both over 65 and I am trying to work out post the budget if they pay tax or not.

Cheers

dunstonh

Sorry, didnt spot the 1 year bit. If you are trying to work out whether they pay tax or not then the reduction in age allowance is something that is unlikely to be an issue anyway.