Where to put £100k .

alfmurph

Father is 91 with dementia .
I have power of attorney for him for both care and financial .
He is unsafe in his home so is now staying with my wife and myself .
I have just sold his house as he can never go back there .
Where is best to invest his £100 k for him please .
I know care home might need to be paid in future but at the moment he is stable .
I was thinking at even 2% interest he would have to pay tax as £1000 interest annually is the limit .
After this would he pay 20% or 40% tax on the interest .
His only other savings are £20k which i keep in high street bank account as i have been using it to pay his bills and old folk outings etc .
Could someone give me a plan for his money please .

eskbanker

alfmurph said:

I was thinking at even 2% interest he would have to pay tax as £1000 interest annually is the limit .
After this would he pay 20% or 40% tax on the interest .

Paying some tax on interest shouldn't really be seen as a major issue, and may be completely irrelevant anyway, dependent on his total taxable income - what does he receive from pensions and any other sources?

Eyeful

Could seeing an IFA from here be of some help?
https://societyoflaterlifeadvisers.co.uk/

Albermarle

If he has only state pension as income, then he will be below the personal allowance of £12570, so he will be able to earn more interest than £1000 without paying tax. If you answer eskbanker's question, you will get a clearer answer.

MX5huggy

Does he have or used up his Premium Bond allowance (£50k) should expect 1.3 to 1.4% return on £50k tax free. 

Stubod

+1 for sticking £50k into premium bonds...probably the remainder in the highest interest account you can find...may be worth getting a 1yr "fixed term" one for (say) £40k, and an instant access one for the remainder?...(NB it is normally fairy quick to get money out of PB's shoul you need it), ...would certainly not be looking at any investment based products?

xylophone

Depending on his situation, he might not be paying interest anyway.

https://www.gov.uk/apply-tax-free-interest-on-savings

alfmurph

Between his oap , private pension and attendance allowance he has £1000 per month coming in . That is it .
I found a coventry building society account paying 2.4% until august 2023 .
Might put £80k into that and find a instant access account for the rest .
Although i realise premium bonds are a big gamble i will think about it .

alfmurph

Starting rate for savings

You may also get up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings.

Just read this as suggested .

Does that mean father has £12570 plus £5000 personal allowance before he pays tax .

alfmurph

(NB it is normally fairy quick to get money out of PB's shoul you need it), 
What is this please .

sevenhills

I would favour premium bonds, I have just bought some myself.
I wouldn't lock any money into an account, as early withdrawal could mean that you would suffer a penalty.