Lump sum saving

Yorkie1967_2 · 26 April 2019 at 5:17PM

My son has received a lump sum of money and I wanted to put it in a good account for him, I've trawled around and thought a fixed rate account would be good as it's straight forward and he doesn't need access to the money. Any advice would be welcome.
Thanks

ColdIron · 26 April 2019 at 5:24PM

You'll need to provide more details to get any meaningful replies. How old is your son, over 16, 18? What is the sum involved, £200, £2,000, £20,000?

Yorkie1967_2 · 26 April 2019 at 5:31PM

Hi, My son is over 18 and the amount is £38,000.

cloud_dog · 26 April 2019 at 5:39PM

Is there some special trust arrangement with the lump sum? Otherwise, why isn't your son investigating options for his money?

Yorkie1967_2 · 26 April 2019 at 5:43PM

He has a brain injury, which is why I'm doing it for him. Not really up to speed with all this investing and saving stuff, find it a bit daunting and confusing looking through everything. The money can sit there earning interest for him for a few years which is why I thought the fixed rate account would be good.

ColdIron · 26 April 2019 at 5:57PM

Marcus at 1.50% is probably the best for easy access
https://www.marcus.co.uk/uk/en

You can get 2.00% with a one year fix, more if you lock it away for longer
https://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html

Or perhaps a mixture

cloud_dog · 26 April 2019 at 6:28PM

Yorkie1967 wrote: »

He has a brain injury, which is why I'm doing it for him. Not really up to speed with all this investing and saving stuff, find it a bit daunting and confusing looking through everything. The money can sit there earning interest for him for a few years which is why I thought the fixed rate account would be good.

Hi

Obviously, it is difficult to get across all the financial information regarding your son's situation but do you need to be considering the longer term and whether some money should be invested rather than just savings accounts?

Albermarle · 26 April 2019 at 6:38PM

Also a similar question is asked regularly on the forum . Each persons circumstances are a bit different but most of the advice is similar . If you scroll through a few pages of threads , looking for - lump sum ; inheritance ; what do I do with the money etc etc you will see the usual advice.

Yorkie1967_2 · 26 April 2019 at 8:08PM

Did think about Investing some, but as it isn't my money, didn't want to take any risks with it. Or am I being a bit over cautious?

AnotherJoe · 26 April 2019 at 9:17PM

If Its for long term then yes, by being too cautious you are guaranteeing it will lose value amd you are actually taking a big risk with it. For the long term say 15 years and on it should be in perhaps medium risk stock market investment. However £38k isn't that much money really, do you know when it will be needed and how much a year ?

Yorkie1967_2 · 26 April 2019 at 9:39PM

He doesn't really need to be dipping into it too often. He doesn't need a regular income from it. It's compensation he's been awarded, but because of his condition it's better he doesn't know it's there until a very rainy day. He has a comfortable life at the moment and doesn't really want for anything. I would just like the money to be working for him the best way it can.