£5000 over 'x' years

leicsmarkyr

Brother now is thinking of investing the money he has inherited into a fixed term for either 1, 3 or 5 years.

He would like access to it if needed so does happy to lose interest but not the initial investment

Anyone got any recommendations on where/what he can do?

dunstonh

1 and 3 years is to short to invest. 5 years is the real minimum. Modern investments can allow open ended terms with no penalty on access at any point however, I feel from the way you have written your post that investing is not what is wanted here but savings accounts. Is that the case?

leicsmarkyr

dunstonh wrote: »

1 and 3 years is to short to invest. 5 years is the real minimum. Modern investments can allow open ended terms with no penalty on access at any point however, I feel from the way you have written your post that investing is not what is wanted here but savings accounts. Is that the case?

Bit of both I suppose - he wants to make sure he doesnt lose out but wants to gain and get the money easily if he needs it

dunstonh

leicsmarkyr wrote: »

Bit of both I suppose - he wants to make sure he doesnt lose out but wants to gain and get the money easily if he needs it

Investing will typically mean either putting the money aside for 5 years with no access (for guaranteed options) or putting it aside open ended with the view it should be there for at least 5 years but no guarantee on the capital.

TRUSt_NO_1_2

leicsmarkyr wrote: »

......

He would like access to it if needed so does happy to lose interest but not the initial investment

Anyone got any recommendations on where/what he can do?

Yes...

put it under his pillow.

He'll still have £5000 GUARANTEED,but it won't buy much !
He can withdraw it instantly 24 hours per day,with no worries about a run on the bank or bankruptcy.....

It might not buy much food or petrol ,but settees will probaby be bang cheap at DFS !

Paul_Herring

What sort of 'access' is he after? Immediate? Can he wait a couple (up to 3) of months? Would he want access to the whole of the amount or just some of it.

"Laddering" could possibly be suitable:

Put £1000 in a 6 month fixed rate, £1000 in a 12 month fixed rate, possibly another £1000 in a 2 year fixed rate, keep the remaining £2000 in normal savings.

3 months later, put £1000 in another 6 month fix, £1000 in another 12 month fix.

He now has £1000 maturing in 3 months, 6 months, 9 months, 12 months 18 months.

3 months later, recycle that maturing £1000+interest in a 1 year bond... and so on.

Keep going until he actually needs part of the money, and the longest he'll need to wait for part of it would be 3 months.

Of course, if he wants access immediately to all of it at some unknown time in the future, then this won't work.