Best options to get monthly income from £100,000?

chubsta

I guess the next question that naturally follows on, is how to make sure where the money is going is legit?

I understand the £80,000 compensation limit, so the money would be split, and also that each lender has to be covered by a separate licence as some share which would obviously be no good.

So, any tips? Previously I have only ever used the big banks, such as nationwide, so 'venturing into the wild' is quite scary!

Band7

All savings account listed here are FSCS protected, i.e. up to £85,000.

To be on the safe side, you can double-check on the FSCS website before committing.

Albermarle

So, any tips? Previously I have only ever used the big banks, such as nationwide, so 'venturing into the wild' is quite scary
When it comes to savings accounts, best to avoid High St Banks, as rates tend to be very poor.
There are a lot of smaller banks that you will never have heard of, and they usually have the best rates.
Many of the posters on here happily save with these banks, as they are all covered by the £85K compensation.
If you are still nervous a half way house could be one of the bigger building societies , like Nationwide, Leeds , Skipton or Coventry. They sometimes have some good rates, but not normally the best.

Eco_Miser

chubsta said:

... one of which being a reluctance to actually spend any of the money, which has been growing over many years (the total sum involved is much more than £100,000); in our discussions about what to do with the money, I always get the reply 'its for the future, I may need it someday!'. When asked what it could possibly be used for, when the house, car etc are all paid for and insured, I always get a bit of a blank, followed by 'I would like to leave it to the kids' - said children stand to inherit about £250,000 each from property when we peg it so I think that is enough!

So, following on from further discussion, we (this is my other half we are talking about here and although linked financially we have always kept most of our money separate) have decided that at least in the short term a monthly income from it would be a good thing - as long as she doesn't have to actually spend any of the money saved she can live with that.

So the monthly interest is a psychological ploy to show the interest building up?

I have difficulty spending money too - no reason to save any more, but no pressing reason to spend, and no desire to spend just to spend.

Perhaps she should give 'the kids' a big lump sum now, to get the pleasure of watching them benefit from it.

chubsta

the three kids have already had £33,000 each for house deposits, so they have had plenty to be going on with! 


Now of course, the big problem is going to be to persuade her that whichever organisation we look at putting the money into isn't just a bunch of scammers with a flash website who will take the cash and disappear on a jetski to spend it!

Albermarle

Another link and as with the previous one supplied, every bank mentioned is covered by the £85K compensation scheme, and perfectly safe .
Savings accounts: 2.9% easy access or up to 4.56% fixed (moneysavingexpert.com)

jimjames

You might want to look at investment trusts or other income paying investments if the time period is at least 5 years. No need to put the whole £100k in one place, you could have £50k in savings and £50k in investments for example so you have a mix of capital guaranteed and opportunity for growth.

chubsta

jimjames said:

You might want to look at investment trusts or other income paying investments if the time period is at least 5 years. No need to put the whole £100k in one place, you could have £50k in savings and £50k in investments for example so you have a mix of capital guaranteed and opportunity for growth.

Yeah, there is more money which is going to be put elsewhere, we figure a 5 year lock-in is probably a reasonable amount of time.
There is no hurry with any of this so thanks for everyone's suggestions, particularly the links to reputable sites, it is now time to do 'proper' research, and spreadsheets of course, I love spreadsheets!