Where best to put a large sum of money

Actaeon

Hi, I am after some advice.  I have an elderly aunt who sadly has had to go into a home.  We are selling her house and with some inheritance she will receive from a sister who has recently died we will have the best part of £220,000.00 to put somewhere.  Please could I have some advice on where best to put the money.  Thanks in advance

Albermarle

Are you selling the house on her behalf with Power of Attorney ?
Will all the money need to be easily accessible ( to pay care home fees for example ) or just part of it ?
Presume she already has at least one bank account /savings account already?

Actaeon

Yes I am her POA and yes the money will need to be accessible and yes she has savings account linked to her bank account

xylophone

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

Albermarle

Actaeon said:

Yes I am her POA and yes the money will need to be accessible and yes she has savings account linked to her bank account

So you should not have more than £85K with any one bank/building society .
Suggest you max the £85K into her existing accounts, which are easily accessible .
Then you could put £85K into a one year fixed rate account with another bank and the rest into say a two year fixed rate with another bank .
These are just ideas, other posters may have better ones .

Linton

NS&I is guaranteed by the government for any amount of money.  It is the prudent place to hold large sums of money which is the primary factor for a PoA.  Plus the interest, even after the recent decrease, is probably higher than from a high street bank.

xylophone

Plus the interest, even after the recent decrease, is probably higher than from a high street bank.

They don't have to use a high street bank?

Albermarle

Linton said:

NS&I is guaranteed by the government for any amount of money.  It is the prudent place to hold large sums of money which is the primary factor for a PoA.  Plus the interest, even after the recent decrease, is probably higher than from a high street bank.

The recent changes mean that NS& I are paying the same pitiful rates as high st banks
Better rates are available from smaller banks and building societies ( all covered by the £85K compensation)

AnotherJoe

Put one years needs (eg this coming year)  in an instant access.

Another years needs (eg the next years)  in a one year fixed

The remainder in a two year fixed.

When the two year ends, repeat.