High Interest Accounts?

CharlieCC_3

Hi All,

We are selling mums and dads house to fund their care and need some advice on the best way to invest the proceeds.

The house is worth about 190,000 - £95,000 each.

Does anyone know the best way to invest this money to get maximum interest. We need to set up two saving accounts as one parent has a registered EPA. We also need simple access to this money and not to tie it up as the total care cost for them both is about £1500/week.

Many thanks
Charlie

Jake'sGran

There are a few accounts around paying 6.25-6.3% e.g..ICICI,Sainsbury's, Northern Rock and all the ones mentioned offer instant access. Unfortunately this money is not going to give the full interest as it will be used up so soon, two years in fact. A quick calculation shows that the full interest on this sum at these rates would provide about seven weeks payments to the care home but the capital will decrease quickly as mentioned above. Such a shame that both have had to go into care.

CharlieCC_3

thanks Jake,

When you put it like that is is rather bleak! Maybe premium bonds are a better bet.

thanks
Charlie

colbee

Don't forget to take into account their state/private pensions and any other state allowances they might be entitled to - it's the shortfall you need to fund, surely.

Jake'sGran

colbee wrote: »

Don't forget to take into account their state/private pensions and any other state allowances they might be entitled to - it's the shortfall you need to fund, surely.

Yes, I was going to mention all that as my son-in-law had to sort all this out when both his parents had to go into care but I decided that Charlie must know about that. My SinL's Dad had a good GPO pension too. It's interesting that he did not have to sell his Dad's house. His solicitor found a loophole to avoid doing that but I can't remember the details - might have been something to do with the house being in his father's name only.

CharlieCC_3

Sorry forgot to include the income. State Pension, private pension and attendance allowance cut it down a little bit.

I was hoping to find something that gave high interest for to sets of 100,000 but all seem to carry a risk and tie up the money long term.

thanks for the pointers to the two accounts
Charlie