Investing sizeable sum for relative.

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We have LPA for a relative and wish to invest a sizeable sum. We need an account that allows direct debit to pay for care but hopefully also pays some interest and is, of course, fully protected. Not too much to ask???? Would really appreciates you experts giving us your thoughts.

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  • ColdIron
    ColdIron Posts: 9,163 Forumite
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    What's a 'sizeable sum'? The suggestions could be very different for £20,000 and £200,000
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    You probably don't mean invest - which is taking a risk in the expectation of higher rewards - but save - depositing money at interest. You may want two or more accounts, a current account to hold a buffer amount from which the direct debits are taken (which may also pay reasonable interest), and other accounts which pay interest (and capital as necessary) into the current account.
    Eco Miser
    Saving money for well over half a century
  • Vortigern
    Vortigern Posts: 3,249 Forumite
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    An "immediate needs annuity" might be a suitable investment for your relative's money.

    The annuity should pay the care costs for the rest of the relative's life.
  • Linton
    Linton Posts: 17,246 Forumite
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    If it really is a sizable sum nearer £100K than £20K and you have little experience of managing significant amounts of money you should in my view be seeking professional advice. You must be seen to be acting in the best interests of your relative.

    Agree with the idea of a care annuity if the sums work out right.
  • magicsnaps
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    It's about 50K - so not much really. We'll look into the options suggested. Thank you all for the advice.
  • xylophone
    xylophone Posts: 44,623 Forumite
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    A relative has PoA for one of his relatives and operates a Santander 123 for the donor - it is into this account that the donor's income is paid and from this account that care home fees are paid - the account is then topped up on a monthly basis.

    Sadly the interest rate is dropping but it might be worth a look in the circumstances you describe.

    If possible, you might wish to look into spreading the balance round other high interest current accounts.

    If DDs are required, a couple of Tesco savings accounts (one of each) can be used to pull money by DD from other current accounts.
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