Top accounts to pay an income to a widow?

EAB2

Hi all,

I'm sure this question has been asked many times, but as rates change daily could someone possibly point me to the best places for savings accounts that pay a monthly income?

I need to invest c£200k from my dad's estate so that mum can get an income and will need to spread across three accounts for complete safety I assume.

So many of the accounts seem to pay low interest and then pay a bonus at the end of the year, so that is confusing the matter

Thanks in advance!
Ed

emeraldbugle

Am sure someone more knowledgeable will be along soon, but the Cheshire Building Society do Fixed Investment Bonds, the maximum is 2 years. The interest can be paid into another account and can be paid monthly. You can invest from £100 to £2m.

CLAPTON

is this money her only income?
does inflation matter to her?

atush

You could also think about investing in a series of one year bonds, each maturing in a different month if the income is higher that way (say 10-12 at 20K or less).

Also, does your mother work and have other income? Pensions etc? If she will be paying tax, put as much into ISAs each year so as to save on tax. If she isn't a taxpayer, make sure you submit an R85 to each banks so that she gets all interest Gross.

BLB53

As you have indicated, its going to be difficult to keep pace with inflation from cash deposit accounts. I strongly suggest you look at equities for a good proportion of the money, over the longer term, 10 years or more, they are much more likely to prouce income that rises with inflation.
Open a S&S ISA for your mother and purchase a few income orientated invetment trusts - average current starting yield is around 5% which will steadily increase over time and most pay out quarterly. Of course, if held in an ISA, the income is tax free.

EAB2

CLAPTON wrote: »

is this money her only income?
does inflation matter to her?

She has a widows pension and some of my dad's pension that has been transferred to her. Inflation matters to us all but there is chuff all we can do about it really!

EAB2

BLB53 wrote: »

As you have indicated, its going to be difficult to keep pace with inflation from cash deposit accounts. I strongly suggest you look at equities for a good proportion of the money, over the longer term, 10 years or more, they are much more likely to prouce income that rises with inflation.
Open a S&S ISA for your mother and purchase a few income orientated invetment trusts - average current starting yield is around 5% which will steadily increase over time and most pay out quarterly. Of course, if held in an ISA, the income is tax free.

Thanks for the thought, but I wouldnt touch equities with the proverbial bargepole at her time of life. If it were me and they had 20-40 years to grow it would be different, but there is a high probablility of the world economy going pop in the immediate future and mum wouldnt be happy taking on any risk at all.

EAB2

I'm very surprised that most building societies dont seem to have a clue about this - it cant be that unusual a request. I was expecting them to say that the account must be opened in the name of 'the trustees of my late father', for example, and the interest can just be paid to another account.

No one seems to have a clue.