Advice please

Lanz81

My mum and dad has £50k redundancy and pension. they need to live off some of it but want to put some away for no longer than 2 years. They have used their £3,600 in their Cash ISA and are over 50 so have told them to top up to £5,100. They really dont want to take any risks but i think they should use the remaining £5,100 in something or do you just think maybe a fixed rate saving like the AA 2 yr one. Is there a guarentee plan out there for just two years for the rest of this years S&S allowance? they need to keep about £20k in an instant access as they only have a certain income now that my dad has lost his job and as my mum is unwell is will not go back to work as he is now her carer? what do you think guys? lots of advice will be much appreciated.

PS current isntant savings is with lloyds and isa is with halifax.

Baldur

Lanz81 wrote: »

My mum and dad has £50k redundancy and pension. they need to live off some of it but want to put some away for no longer than 2 years. They have used their £3,600 in their Cash ISA and are over 50 so have told them to top up to £5,100.

They are both entitled to an annual ISA allowance, so (unless I have misread your post) they could each have a Cash ISA, which would enable them to have £10,200 tax free savings in the current tax year.

DiggerUK

Lanz81,
NSI Index Linked would be perfect, they are for a minimum of 3 years though. Would they go the extra year.
Other reason I recommend NSI IL is because the max allowance is 15K each, that still leaves them with the 20K readies that they want.

They will get about 3%+ at the moment in a bog standard A/C, but can transfer as good deals come up.

Wish them the best.

Lanz81

thanks both

yes i am going to get them to top up their cash ISAs to £5100 each but they dont really want to take any risks with the rest by putting them into stocks and shares unless there is a short term guarentee bond out there?

The AA are offering 4.35% saver at the mo, what do you think of them?

NSI seems good thanks for that.

Baldur

The AA are fine, I've just had one of their fixed rate accounts mature - their accounts are basically handled by Birmingham Midshires.

cheerfulcat

Hi there,

Lanz81 wrote: »

Is there a guarentee plan out there for just two years for the rest of this years S&S allowance?

No, sorry; investments with guaranteed returns and less than a five year term are not allowed in S&S ISAs.