What to do with mum’s savings?

Ellalou

Hi,

looking for some advice! My mum has recently told me she has savings that she has been keeping as cash in the house. She is 68 years old and has been saving due to retirement coming up. We had no idea she was keeping it in the house.

Anyway in savings she has roughly 
£22k then across other savings accounts she has £36k.

What should we do with this money? I don’t want it lying about the house and I want it to work for her / have access to the money should they need it.

thanks 

Stubod

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

Brie

best to get it into an account, preferably one with some interest paying. 

I assume mom is still compes mentis so she/with your help will be (assuming you haven't already) setting up all the necessaries - will, POA, maybe someone having 3rd power authority on the accounts so she doesn't need to be fussed.  

Grumpy_chap

Be aware that paying £22k in cash into a bank may not be totally straightforward.

Linton

Assuming this is money that your Mum simply wants available should she need it rather than, for example, to provide a steady income of £1.5K/year inflation linked for the rest of her life I suggest she puts the £22K into her existing savings accounts.  Perhaps you can help her check she is getting a reasonable level of interest.

Trying to get a steady income from the money or chasing maximum returns would, I fear, require much greater complexity than I asume Mum would be able to manage given your description of the current situation.

Ellalou

Brie said:

best to get it into an account, preferably one with some interest paying. 

I assume mom is still compes mentis so she/with your help will be (assuming you haven't already) setting up all the necessaries - will, POA, maybe someone having 3rd power authority on the accounts so she doesn't need to be fussed.  

Yeah she’s still working and fine, we just need to help her with what to do with this money. Really not comfortable with her having it in the house! 

xylophone

My mum has recently told me she has savings that she has been keeping as cash in the house. She is 68 years old and has been saving due to retirement coming up. We had no idea she was keeping it in the house.

Does your mother hold a current account at a bank with a local branch or a savings account  either there or at a local building society?

I'd suggest that she makes an appointment to see a customer adviser (you could go with her) and explain that for some time (years?), she has been putting aside cash at home and you/she are now concerned  about the risk (fire/theft etc).

You should be advised about how to proceed.

Beddie

Perhaps Premium Bonds? They don't need managing once they've been bought, the winnings can be paid into her account. And you can get your money back in a couple of days.

Albermarle

Ellalou said:

Brie said:

best to get it into an account, preferably one with some interest paying. 

I assume mom is still compes mentis so she/with your help will be (assuming you haven't already) setting up all the necessaries - will, POA, maybe someone having 3rd power authority on the accounts so she doesn't need to be fussed.  

Yeah she’s still working and fine, we just need to help her with what to do with this money. Really not comfortable with her having it in the house! 

Presumably most of the money is not needed short term. In which case Fixed term savings accounts, where you lock your money up for one year , three years, five years etc pat better interest rates normally. These could be suitable for some of the money at least.

jimjames

Based on age there is also the potential to look at paying into a pension if she isn't maxing out what she can pay in. That gives an immediate boost of at least 20% even if left in cash and being past retirement age is immediately accessible once she stops working.

Sea_Shell

xylophone said:

My mum has recently told me she has savings that she has been keeping as cash in the house. She is 68 years old and has been saving due to retirement coming up. We had no idea she was keeping it in the house.

Does your mother hold a current account at a bank with a local branch or a savings account  either there or at a local building society?

I'd suggest that she makes an appointment to see a customer adviser (you could go with her) and explain that for some time (years?), she has been putting aside cash at home and you/she are now concerned  about the risk (fire/theft etc).

You should be advised about how to proceed.

I agree.

Phase 1 is getting it paid in somewhere.   This is the tricky part.

Does she have statements showing, say, weekly withdrawals of £x over a long period of time?

They'll probably want an account of where the money's from.

Sold a car?


Only then can you start thinking of where's "best" in the longer term.