How to invest 250k - low risk

Moobathon

Dear All,

First of all my apologies if this has come up before - I couldn't find a discussion about this sort of amount and level of risk.

A close relative is shortly to inherit ~£250k - has no debts and own house. They do not want any hassle, are very risk-averse, and would simply bung it in a savings account if possible. Can anyone advise the best way to proceed - is there one or other bank or building society best for this? Or is it a bad idea to put that much in one place - should it be split between different institutions?

I quite appreciate there won't be one simple answer - and I apologise again for the banality of the question - but any suggestions would be gratefully received.

Radiantsoul

Savings are protected up to £85k, so they should use a few institutions and be careful that they don't have the same license. Probably best to put £15k per year into an ISA as a tax shield. They might also wish to review any pension arrangements.

joe_mcclaine

Your relative could look at some NS&I products.

Archi_Bald

Acting based on 3rd hand opinions from anonymous people who have no insight into the circumstances or requirements of the potential investor must figure amongst the highest possible risks anyone could possibly take. They should be seeking professional advice from an IFA. There is a list of IFAs on unbiased.co.uk.

xylophone

http://www.moneysavingexpert.com/savings/safe-savings

In the short term, your relative might like to hold the money in NS&I Income Bonds.

http://www.nsandi.com/income-bonds

The income is paid monthly, gross, to a bank account.

http://www.hmrc.gov.uk/tools/r85/r85-2015.htm

Other savings rates http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

In the longer term, advice from an IFA might be considered.

https://www.unbiased.co.uk/

enjoyyourshoes

You used the word 'invest', you may have chosen 'save' to get at what you really want to do ?


You will have to spread it about within current accounts :-
Santander 123(3%) £30 K per account (not sure about joint). If you have kids could use Santander 123 mini in trust £2K


Lloyds (4%) £5 K


TSB (5%) £2 k plus joints


Also look at regular saver (Lloyds £400 per month) at 4%
First D (6%) £300 per month & HSBC advance (6%) £250 per month


If you want to 'invest' best advice (already mentioned) would be speak to a accredited FA

ColdIron

enjoyyourshoes wrote: »

Santander 123(3%) £30 K per account (not sure about joint)

£20 K per account