90 year old

von

My Mum is 90 and a 1 year bond she had with the alliance & leicester has just matured. she doesn't pay tax and has been advised by alliance & leicester to re-invest the money (£17k) in a 2 year bond with them. She says its at 4% but i can't find one for 4% with them. She has gone ahead and given them the cheque. My question is do Alliance & Leicester have a 2 year fixed rate bond at 4%? And should they have advise a 92 year old to invest her money for 2 years?? - not being maudlin or anything but it is a long time at that age. Also she is hard of hearing so may have got the interest rate wrong.

shrewsaver

See this link:

click here to see.

For a 90 year old my personal view would be that a 2 year bond is unsuitable, a 1 year bond would be better.

simon_templar_2

Age is no barrier to a savings account and plenty of people live past 92 anyway. Even if the worst happens the bond can be transferred into someone elses name.

anamenottaken

simon_templar wrote: »

Age is no barrier to a savings account and plenty of people live past 92 anyway. Even if the worst happens the bond can be transferred into someone elses name.

As long as she does not think she personally will need to access the capital, then the two-year nature of the account doesn't matter.

Though when someone dies I do not think the "bond" would be transferred to someone else. Instead it would be part of the deceased's estate, the cash would be realised and subject to to being dealt with in line with a will (or intestacy rules).

dzug1

Banks, etc, do have offers for reinvesting customers that are not available to/not advertised to new customers.

For instance, NSI one year fixed rate bonds are still available - but only for the proceeds of maturing one year fixed rate bonds.

So the fact you can't find it advertised doesn't mean it doesn't exist.

catieeb06

It sounds to me like she's been offered Abbey's 2 year 4% bond.

Over balances of £10,000

bjorn_again

simon_templar wrote: »

Age is no barrier to a savings account and plenty of people live past 92 anyway. Even if the worst happens the bond can be transferred into someone elses name.

My father in law is 94 and has just put his money into a 3 year bond.

opinions4u

bjorn_again wrote: »

My father in law is 94 and has just put his money into a 3 year bond.

Silly old sod.

He should have put it in to a higher paying 5 year term deposit.

Then the estate would have received that higher rate if he croaked within the term but the funds would have been released penatly free at an earlier stage.

Actually, if you have a temrinally ill relative this is quite a good way to get a high return for a short period of time ....

dunstonh

Actually, if you have a temrinally ill relative this is quite a good way to get a high return for a short period of time ....

Using a pension is a good way as well if they are under 75.

opinions4u

dunstonh wrote: »

Using a pension is a good way as well if they are under 75.

You know, I was being a little glib when I posted, but maximising pension contributions in such sad circumstances would never have crossed my mind.

Porcupine

What happens if the accountholder has to go into residential care, and needs the money to pay fees? I wouldn't know, but I could see a problem if they had too much cash to be eligible for state help, but couldn't get access to any of it for years. Is there any support in that case? Any of us could have a permanently-disabling stroke and be in that position, so it's not just a problem facing the elderly.

Sorry to explore the glum possibilities...