Where/how to invest mums funds

baser999

My brother and I have LPoA on my mother’s NWB account. A recent decision to liquidate an investment plan that was in place now means she has £80k+ in her savings account earning less than 2% Theres a further £5k in the current account. Tried to top up her Premium Bonds to the max to utilise £39k (she likes Ernie) but NWB only allowing a maximum daily transfer of £5k. NWB not allowing the opening of a digital saver (£150pm) as it says she doesn’t have a current account? Bizarre. NWB are pretty useless. On-line banking is a pain, trying to deal with a human is a pain . . .
What can we do to get her a better return? She has care home fees of £6k pm so can’t afford to lock up the money completely. 

In normal circumstances we’d look at moving account elsewhere but as the account would still be in her name (with us as PoA) she doesn’t seem to meet opening account criteria

eskbanker

baser999 said:

In normal circumstances we’d look at moving account elsewhere but as the account would still be in her name (with us as PoA) she doesn’t seem to meet opening account criteria

In what way doesn't she meet account opening criteria?  I imagine that some will be easier than others to open under LPA, but that'll be down to providers' administrative LPA processes rather than account opening criteria as such - who have you tried so far and on what grounds did they decline?

Middle_of_the_Road

baser999 said:

What can we do to get her a better return? She has care home fees of £6k pm so can’t afford to lock up the money completely. 

In normal circumstances we’d look at moving account elsewhere but as the account would still be in her name (with us as PoA) she doesn’t seem to meet opening account criteria

As you say, moving the account would be a pain, and not achieve much. The care home fees are going to erode those savings at an alarming rate, so any savings interest rate increase you might get in a better account would at best pay for another two weeks care as things stand.

Premium bonds might be the only way to have a chance (small) of changing the eventual outcome if you're very lucky. You can increase the payment limit on the Natwest current account, (up to £20k) in on-line banking.

Have you enquired about any benefits she might be entitled to? Attendance for example. 

ETA. Link-

Attendance Allowance: Eligibility - GOV.UK (www.gov.uk)

If you’re in a care home

You cannot usually get Attendance Allowance if you live in a care home and your care is paid for by your local authority. You can still claim Attendance Allowance if you pay for all your care home costs yourself.

xylophone

She has care home fees of £6k pm so can’t afford to lock up the money completely. 

In normal circumstances we’d look at moving account elsewhere but as the account would still be in her name (with us as PoA) she doesn’t seem to meet opening account criteria

Are you aware of the powers you have as LPOA? Is there any restriction in your PoA?

 Otherwise, you should be able to register the LPOA with another bank/building society and open an account in your mother's sole name with you as Attorneys.

Are her care home fees currently paid by SO/DD from the Natwest current account? Are you regularly moving money from another account to Natwest to meet this bill?

LHW99

Probably a ladder of fixed rate savers in a local building society (Nationwide isn't local, but do have branches). Put enough in instant access for one year's fees, then set up one year,2 year etc fixed rates.

Middle_of_the_Road

LHW99 said:

Probably a ladder of fixed rate savers in a local building society (Nationwide isn't local, but do have branches). Put enough in instant access for one year's fees, then set up one year,2 year etc fixed rates.

That would be £72,000 of the 85,000 available. Very little benefit trying to maximise interest on capital which is steadily falling and will be gone in 14 months.

friolento

baser999 said:

  but NWB only allowing a maximum daily transfer of £5k.

You can change the payment limits to max £20k a day. You could also request a CHAPS payment fior a fee