What to do with £40k

Spewy87

I have £40k to invest on behalf of my parents.
They have always banked with TSB and their preference would be to remain with them.


Shouldn't need access to it but would like to get access if ever require.


What's the best options with regards interest rate/growth?

Reed_Richards

Brand Loyalty is frequently penalised by financial institutions. You would most probably do better to shop around than stick with TSB. If your parents are conservative in their approach then compare the interest rates offered by the local building societies with those from TSB.

Are your parents higher rate taxpayers?

In the longer term a conservative sort of stock market investment would most likely out-preform a savings account. Would your parents countenance such a thing?

AnotherJoe

I take it you dont really mean "invest" in the sense of funds and shares but "save" ?

Is that correct?

webjaved

I'd be looking at sticking it into a S&S ISA - It'll give you a greater return than current accounts. But with S&S capital is at risk.

AnotherJoe

Same as with savings then ?

20SmthngSver

I'm with TSB. Internal transfer to me, I'll look after it for you

xylophone

Do your parents want to save or invest?

If save, interest rates and accounts here

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

Flim

Premium bonds for me....

Spewy87

Hi All,


Thanks for the prompt responses.
A few have asked invest or save? They are both retired so have little disposable income so this sum is unlikely to grow substantially.
They are terrified that if they end up in full time care that the government will take their savings to pay for the care (we are in Scotland if that makes a difference) I understand there is a moral argument for/against this.


So, yes its a saving account they are looking at rather than investing in anything.

sixpence.

They could gift the money to a trusted relative and have them hold it for them. That way the government can't take it.

xylophone

They could gift the money to a trusted relative and have them hold it for them. That way the government can't take it.

The "significant operative purpose" of such a gift would be to obtain or increase a means tested benefit.

The local authority would be likely to invoke the "deliberate deprivation of capital/assets" rules.

https://careinfoscotland.scot/topics/care-homes/paying-care-home-fees/