£17K to invest, need monthly income

bowf

We currently have £24K invested in an A+L account,but the interest is calculated annually.
We'd rather invest in an account with monthly interest.
We don't want to 'trickle feed' the new account though.
We'd rather just invest the full £24K in a lump sum and be done with it.
Any pointers to the best option ???

mary

You do realise that in general you get a slightly poorer rate if it's monthly. Having said that it's nice to see the money increase before your eyes.

bowf

Yes,we realise that.
As you have intimated,it's the fact that we have to wait a year to see any kind of return that is infuriating us.
We'd much rather see a monthly return.
Any ideas ???

dunstonh

Just to clarify, as your terminology is a little mixed up. Are you looking to invest or save? You say invest but you then mention interest which suggests savings.

With thousands of products out there, we could do with a little more help narrowing down the options.

MartinYorks

My 80 year old mother has £17k to re-invest and needs monthly income. She is currently with Northern Rock, who are offering to re-invest the £17k at 4.4% fixed for 1-3 years, which produces £2/day (paid monthly) or variable rate paid monthly, currently 4.75%, which produces £2.20 per day, paid monthly, but with instant access/transfer.

Can anyone advise on whether there are better deals than this. She needs monthly income and reasonable access, say 90 days.

Thanks,

MartinYorks

bowf

I suppose save would be the correct term,as we don't really want to tie the money up completely.
We may need access to it for emergencies etc.

dunstonh

Been a few threads like this over the last week. You may want to refer to those.

However, can you clarify; does she wish to invest or save? Your post says invest but then mentions interest rates which is saving.

Accessibility still exists on many investments but it depends on your mother's risk profile as to whether investing is right for her. There are ISA/OEIC providers that allow equity based investments and pay a monthly income but have a guarantee on capital invested in the event of death. So risk may not be that high.

isasmurf

I'm merging these monthly interest threads together as the answers will be similar.

EdInvestor

dunstonh wrote:

However, can you clarify; does she wish to invest or save? Your post says invest but then mentions interest rates which is saving.

You're wasting your time, you know.

People don't appreciate the difference between investing and saving any more.

This is why they keep getting caught out by the salesman at the banks and elsewhere who sell them risk-based products when what they want is a no-risk savings account.

JasonG_2

MartinYorks wrote:

My 80 year old mother has £17k to re-invest and needs monthly income. She is currently with Northern Rock, who are offering to re-invest the £17k at 4.4% fixed for 1-3 years, which produces £2/day (paid monthly) or variable rate paid monthly, currently 4.75%, which produces £2.20 per day, paid monthly, but with instant access/transfer.

Can anyone advise on whether there are better deals than this. She needs monthly income and reasonable access, say 90 days.

Thanks,

MartinYorks

For this one I'd definately get some advice unless you are really clear. Theres the interest rate argument you have above, which is a gamble ie will rates move up or down over time, and can you afford therefore for the income to fall? There is also her taxpaying status, offshore investments, the fact that she is a £1000 pound gift away from being under the £16k limit for applying for council tax discount, the other 30,000 financial products, and this is dependant on her situation, IHT etc etc etc.

Dont mean to through that lot at you, but just wanted to make the point as lots to take into consideration even if it is £17k. Get some good financial advice unless really comfortble with it.

Good luck.

MartinYorks

Sorry for the confusion guys, "save with a monthly income" is what I'm trying to do.

My Mum needs to put the money somewhere where the capital sum is not at risk (the £17k) and where she can receive a monthly income from the sum.

Thanks

Martin