Where should an 80 yr old save cash?

Wobblydeb

I wonder if you lovely people can give me a few ideas to look at for recycling some long term savings for my dad?

He has £20k maturing soon, and has asked where he might get the best rate on it.

He doesn't want to tie it up for more than a year, however it doesn't need to provide a regular income, or be able to withdraw within a year.

Thank you

Robin9

Has he got any debts/mortgage ? Probably not

Does his house need any future proofing - perhaps a down stairs bathroom.?

Alter_ego

Robin9 wrote: »

Has he got any debts/mortgage ? Probably not

Does his house need any future proofing - perhaps a down stairs bathroom.?

The question was where to save it not how to spend it!

18cc

Perhaps a 1yr cash ISA. Do it by Apr 5th to use this year's allowance if not already used, otherwise after to use next year's allowance


If, however, he doesn't really have any other savings then he might get a better rate in a 1yr bond (ie not an ISA) as he is allowed to have £1000 interest tax free anyway.


Google for the best rates.

A_T

Wobblydeb wrote: »

I wonder if you lovely people can give me a few ideas to look at for recycling some long term savings for my dad?

He has £20k maturing soon, and has asked where he might get the best rate on it.

He doesn't want to tie it up for more than a year, however it doesn't need to provide a regular income, or be able to withdraw within a year.

Thank you

What are his goals for his savings?

Robin9

I agree but there are better investments than bank interest, etc.

Both my parents and the inlaws stuck there head in the sands - had money in the bank earning little then found their house was unsuitable. My own father had no downstairs loo, couldn't get upstairs.

As an investment is it not sometimes better to spend rather than put in the bank ? (and possibly have care packages that you have to pay for because you've got too much in the bank)

Dox

Assuming he does want to save rather than spend (and there are some sensible comments above about 'future proofing' his house), have a look at the 'banking and savings' tab at the top of this page for up to date info about best rates etc. If he is a basic rate taxpayer (or non-taxpayer), and IHT won't be an issue, there is nothing much to commend an ISA over other savings options if this £20,000 is his main savings pot.

Heedtheadvice

I agree with A_T. First decide goals and also attitude to risk.
All the best paying accounts come with downsides, as do investments, be they complicated cycling of money between account, regular savings only giving best rate on the current level of saving, tie in for year(s), unprotected accounts/bonds/purchases, lack of guaranteed to capital, volatility etc.

As a bit of lateral thinking, I presume at 80 long term investments might seem to be innapropriate and would seem to rule out S&S investments but there are some fairly low volatile ITs that pay towards 7% in dividends and if life expectation is over five years might just be worth consideration? Outside chance of that being acceptable though, I would agree especially if the £20k was the sum total of assets!

xylophone

Has he ever had a Nationwide Flex direct account?

He could open one of these (plus Flex monthly saver).

He could also open a TSB Plus current account and monthly saver.

he can manage the monthly pay ins by matched SO between the accounts/

He might want to open a Virgin Money monthly saver.

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

ivormonee

What's it maturing from?

I would say safety is the key here so you are looking for a good savings rate. Have a look at any of the comparison sites and see what's currently on offer. For one year you could get at least 1.8% - not ground-breaking, lower than inflation but at least the money is as safe as can be and you'll get at least £360 in interest at the end of the year.

Rich2808

An 80 year old may soon need social care - starting off with home care.

For home care the value of your savings is taken into account but not the value of your house and what you spend on it.

I am just pointing this out as a better long strategy might be to invest it in house improvements or even a bigger house than having it sit there to be taken by the council if you need homecare.

I can speak from experience in terms of my father.