Where to invest cash from house sale?

AlexanderGR8

I am selling my father's house-he is now in a nursing home.I'd like advice on safe investments-avoiding tax where possible(£250K approx to invest).Some of the funds would have to be accessible,although he has sufficient savings/income for several years.He is a tax payer.I am considering Premium bonds and National savings-but what else can you suggest please?Grateful for any help

atush

Premium bonds give a very very poor rate so I would forget that. After any National savings you can find that will give a good rate above inflation if possible (kind of hard as they have withdrawn the current offer of ILSCs) you really need to find the best rates available for both intant acess and longer term savings. Have a look at the stickies on the top of the main page.

If you are very careful indeed, you will find that 250K errodes each year due to inflation. So you may have to look at other investments such as guilts and bonds etc.

oldtoolie

You might consider an annuity to cover his expenses, although be sure to shop around. If his total assets take him over the IHT threshold, the annuity helps to reduce that. He may also want to consider making gifts now to reduce IHT later. Be sure his will is up-to-date and that you have the powers-of attorney needed to help him manage his affairs.

Savings -- MSE has info on the main site. Don't ignore the multi-year savings accounts as the penalty for early withdrawal only reduces the interest rates to accounts of equivalent length. Inflation linked accounts are worth considering as well.