How much could i earn.........

atush

If Income is needed and capital is not to be touched, then you can go fro Equity income funds alongside cash deposits. These can get your 140K 6-7% income and if the capital value fluctuates it wont' matter so much.

This could see you getting close to 10K in icme perannum or close to 5K if you only invested 70K in invested the rest in cash deposits.

Putting as much cash each year into ISAs and perhaps some ILSCs if they come out will protect some of it from being taxed if that is a concern.

onceuponatime_2

Thanks everyone for your replys. You know how the old saying goes about getting blood out of a stone, well just wanted to give a bit more info.
Cash Isa's are apparently maxed out. Will not do stocks and shares Isa's.
The husband is in a final salary pension at the moment.
They dont want to risk there capital.
They dont want to tie monies up for more than six months.
A monthly income would be nice.
They are risk averse.

xylophone

They can each do a cash isa for next tax year - they can check comparison tables.

Then they can check comparison tables for savings accounts paying monthly income.

http://moneyfacts.co.uk/compare/savings/accounts/search/

See http://www.moneysavingexpert.com/savings/safe-savings#whatcounts for deposit protection guide.

psychic_teabag

Are they happy to use online savings accounts ?
Are they happy to shift money around each year to chase the bonus rates, or would they prefer something lower but more reliable.
Would they go to even more effort for a bit more interest - eg drip-feed into some regular saver accounts ?

Do they need all of it available within 6 months, or just some of it ? Some people set up a ladder with several fixed-term accounts maturing at different times, so that there is always some money maturing "soon".

Fixed-term ISAs tend to allow early access with an interest penalty - is that good enough for quick access ? ie they need to decide realistically how quickly they need access to all their money. They should anyway be aiming to withdraw from ISAs after everything else, so makes sense for them to be fixed-term.

From time to time there are non-iSA longer fixed-term accounts that allow penalty-free early access with notice (3, 4, 6 or even 12 months). I'm not aware of any right now, but worth keeping any eye out for these. NSI certificates have already been mentioned - they are intended for 3 or more years, but do allow early access.

atush

Surely they don't need all 140K in six months? I'd put say 20K on for 6 mos, then more for 1,2, 3 years. And get them to keep moving some to ISAs each tax year. AS more of it is protected from tax, this will help them beat inflation (as with a FS pension I am sur ethey pay at least BRTax on their savings).

And if they are a married couple, put more of the non ISA cash in the name of the partner who doesn't have a FS pension as they may have more allowance to be used up so wont pay as much tax.