£100,000 best accounts

Mark_Cooper

Hi all newby here, my dad has had to sell his home to pay for his care home fees, I would like to know the best and the safest place to put his money to gain the best interest, also he needs to have his interest paid monthly into another account. I do not want to take any chances with this money as it may have to pay his fees for a long time. (hopefully)

regards

Mark

1echidna

My suggestion would be to look at term deposits and split the money into three accounts so as to be below the 35k FSA guarantee. From memory Birmingham Midshires and ICICI offer good interest rates for one year and will send the interest direct to your account. To mininise having to reinvest every year a longer term may be advantageous in terms of administration and certainty about what you can get in the way of income for a number of years. You would need to research on a full list of fixed rate savings accounts (use the MoneySupermarket* comparison or Moneyfacts. ) You wouldn't have access to the capital however and for flexibiliy you could have one instant access account. This would require you to become a rate tart over the years to get optimal returns.

liitleblackcat

Perhaps you should split the money over 4 accounts or make sure the interest is not accumulated as it won't take long for £33.3k to go over £35k at 6.5% interest (less than a year anyway). There are quite a few offering 6 month or 12 month bonds at 6.85% or thereabouts.

1echidna

liitleblackcat wrote: »

Perhaps you should split the money over 4 accounts or make sure the interest is not accumulated as it won't take long for £33.3k to go over £35k at 6.5% interest (less than a year anyway). There are quite a few offering 6 month or 12 month bonds at 6.85% or thereabouts.

If the interest is paid into another account as the questioner wants it won't go over 35K

Mark_Cooper

Thanks for the help, I think to be safe I will use a finacial advisor we really can't afford to mess up on this.

regards

Mark