what to do with £22,000 for my elderly mum

Melmel

Hello all. I'm writing here on behalf of my mum. She has just sold a property and with her portion of the proceeds she wants to squirrel it away until needed. She has just started claiming her basic pension but doesn't have much the longterm, what should she do with this money until she really needs it in latter years? Where the best place to lock savings away for to get the best return? She wasn't very money savvy throughout her life so i want to make sure she makes the right decisions now. Many thanks!

Pompeydave1967

Roughly do you think she will need it in a year or 2 or maybe 5 ?

Melmel

i would say 5+

Pompeydave1967 said:

Roughly do you think she will need it in a year or 2 or maybe 5 ?

Pompeydave1967

With ever increasing interest rates hold fire for a bit , if it’s earning nothing in a basic a/c you could at least open a current a/c earning something , I would say chase @ 1.5% but I understand huge backlog waiting times so maybe not. Check the best easy access on this site and hold fire a little until rates jump again.Then could split between a 1 year & 2 year fixed and easy access JUST in case she suddenly needs money.

xylophone

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccesstable

Melmel

thanks very much for the detailed reply Pompeydave, and for the link xylophone, much appreciated!

ChilliBob

To be honest with other banks coming close (or in some specific scenarios) beating Chase I'd not go down that route unless your Mum is phone and app savvy and has a fairly new device. I think both of my parents wouldn't fare too well with Chase or an app only account to be honest.   So Virgin perhaps, although I don't like the UI much, Ford Money, or Marcus - Marcus with bonus is 1.3 for example.

I'd not faff with locking stuff down more than 6 months in the current climate, if at all. Or, if you're hell bent on doing so - perhaps say a third for a year or something. 

Vegastare

Just to say Skipton sent me a advert on 3 year bond @ 2.15 % but it has no early withdrawl....while they do a 3 year fixed ISA at 2% but think ISA yearly limit is just £20.000 it is fixed but could get out with 240 notice and loss some interest, it is still showing on there website - not sure if suitable

Pompeydave1967

I still think a 1 yr fixed / 2 yr fixed would be ideal when rate rises once more , I made the mistake in the past of waiting , waiting , waiting , month after month just to get a a higher rate then after I worked it all out I lost out on interest .