Best account for monthly withdrawals

Minxminnie

I am managing the finances of an elderly relative who is using the proceeds of a house sale to fund care. Needless to say, we're talking about eye watering costs.

I'm trying to find the best home for capital from which he will make monthly withdrawals. He will have 6 figures in a fixed term ISA but needs to keep enough capital available for the fees in the meantime. I don't want to leave large amounts of money in his current account, but savings accounts all seem to pay very little interest unless you don't make withdrawals. I'm shocked that his bank wants to pay me 1% on a 5 figure sum. Are there good alternatives, that I could administer using my PoA? What do others do? TIA!

lr1277

Are you planning for the costs to be met from the interest payments alone?

Or will the capital be reduced with each monthly payment?

friolento

Chase might be an option.

Also pethaps Saga savings but I don’t know whether they support POA.

Expect to have to move the funds when the rates change.

p00hsticks

NS&I income bonds perhaps ? again, not sure how good they are in dealing with PoA

Income Bonds | Our savings accounts | NS&I

tetrarch

https://forums.moneysavingexpert.com/discussion/comment/82082059#Comment_82082059

Registering a POA for for Mother took two attempts but was ultimately successful

Regards

Tet

Minxminnie

https://forums.moneysavingexpert.com/discussion/comment/82081879#Comment_82081879

The capital will be reduced.

Savings accounts are designed for you to put money in, not take it out. I feel like I am missing the type of account which is meant to hold significant capital which is used to provide an income.

Minxminnie

https://forums.moneysavingexpert.com/discussion/comment/82082059#Comment_82082059

Thank you! This is what I wanted: a decent rate of interest and instant access. I will look into PoA.

what-a-save

SAGA savings currently pay 4.5% (variable) with no restrictions on withdrawals to nominated account.

• You can deposit between £1 and £250,000 at a time.
• You can hold up to £1 million in your account

SAGA provide guidance on Power of Attorney.

Regards

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82082418#Comment_82082418

There are lots of no penalty easy/instant access accounts. Your problem will be operating them with a POA.

https://moneyfactscompare.co.uk/savings-accounts/

Minxminnie

https://forums.moneysavingexpert.com/discussion/comment/82082527#Comment_82082527

Yes that's the problem. I have a few suggestions above, though. His own bank only offers 1% on easy access, as does mine and most of the high street names, but moving the money creates the PoA problem which was why I was asking. (It does seem shocking that so few mainstream banks want his capital)

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82083404#Comment_82083404

They do but not at an interest rate you're happy with; they've rarely offered the best rates and you've almost always needed to chase around for the best rates.