Safe investments for elderly relative's savings.

pthompson

An elderly relative has his entire savings split between:

a) a current account (£75k), and
b) an easy-access deposit account (£72k)
c) premium bonds (£50k).

He wants advice on where best to put that current-account balance in particular, but also whether the others should be moved elsewhere.   Can anyone offer some suggestions please?

He has no debts and his modest pension covers his frugal lifestyle.

The suggestions must be low-risk and very simple for a non-savvy to understand. 

Many thanks for your thoughts. 

d63

pthompson said:

An elderly relative has his entire savings split between:

a) a current account (£75k), and
b) an easy-access deposit account (£72k)
c) premium bonds (£50k).

He wants advice on where best to put that current-account balance in particular, but also whether the others should be moved elsewhere.   Can anyone offer some suggestions please?

He has no debts and his modest pension covers his frugal lifestyle.

The suggestions must be low-risk and very simple for a non-savvy to understand. 

Many thanks for your thoughts. 

Does he have internet access and feel comfortable about operating some kind of online account? As, speaking largely, that is where the better accounts are to be found.

lr1277

Income bonds from NS&I can be opened and operated online, by phone or by post. And as it is NS&I it should be safe. Also instant access. Not the best interest rate available rate, but meets the other requirements.

MK62

If you want "safe" then investments are likely to be unsuitable......savings accounts covered by the FSCS would appear to be more in line with what you want........just be sure to use a couple of accounts so that no institution holds more than £85k (I'd probably go no higher than £80k though to allow for outstanding interest)

jimjames

First thing is to move the current account balance. That could be earning nearly £4000 per year in a savings account like Chip or similar paying over 5%

badger09

Depending on how ‘modest’ their pension is, that level of savings in accounts paying decent levels of interest could generate enough to incur tax liability. In which case, they should consider sheltering £20k pa in an ISA. 
Depending in their age, they could also consider a SIPP. 
They might also consider spending some, though for many of us, that requires a change of mindset😊. 

mebu60

badger09 said:

Depending on how ‘modest’ their pension is, that level of savings in accounts paying decent levels of interest could generate enough to incur tax liability. In which case, they should consider sheltering £20k pa in an ISA. 
Depending in their age, they could also consider a SIPP. 
They might also consider spending some, though for many of us, that requires a change of mindset😊. 

Am trying very hard, it is far easier to say than do! 

Albermarle

Worth a read, assuming he wants savings accounts and not actual investments.
Savings - All Guides - MoneySavingExpert

pthompson

d63 said:

Does he have internet access and feel comfortable about operating some kind of online account? As, speaking largely, that is where the better accounts are to be found.

Thanks for your response.

He doesn't use Internet (or even phone ) but his daughter has Power of Attorney and should be able to assist with that.   

In general, are you suggesting a couple of online high-interest savings accounts?    How about £20k into an ISA tracking FTSE?  

(I'll suggest he keeps the premium bonds).

mebu60

pthompson said:

d63 said:

Does he have internet access and feel comfortable about operating some kind of online account? As, speaking largely, that is where the better accounts are to be found.

Thanks for your response.

He doesn't use Internet (or even phone ) but his daughter has Power of Attorney and should be able to assist with that.   

In general, are you suggesting a couple of online high-interest savings accounts?    How about £20k into an ISA tracking FTSE?  

(I'll suggest he keeps the premium bonds).

Hardly fits the 'low risk' requirement. Why not a Cash ISA if tax is an issue? 

km1500

if you want total simplicity then move it all to NS&I and everything is in one place and totally protected

you could open a direct saver for instant access, open a cash ISA with 20K etc etc

although the interest rates are not the best it is certainly better than leaving it in a current account