Best 2 year INCOME BOND?

Jo67_2

Hi
I need advice. My mother-in-law needs to re-invest £70k for 2 years to give her a monthly income and she needs to do it sooner rather than later as she had a 5 year income bond that has just come to an end.

What is the best way to do that please?
thanks

psychic_teabag

The straight-forward way is presumably just the best 2-year fixed-term account with interest paid monthly out to a different account.

For more flexibility, could carve off a little bit of the capital to pay the income, and put that in shorter-term accounts (instant-access, notice, 1-year fixed). Then the rest can be put in a fixed-term account with the interest reinvested. That interest will then make up the difference of the capital. Martin has an example on his fixed-term savings article IIRC.

xylophone

http://www.money.co.uk/savings-accounts/fixed-rate-bonds.htm