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  • FIRST POST
    • Iceman2512
    • By Iceman2512 10th Nov 18, 1:30 PM
    • 1Posts
    • 0Thanks
    Iceman2512
    Information on savings short term
    • #1
    • 10th Nov 18, 1:30 PM
    Information on savings short term 10th Nov 18 at 1:30 PM
    Hi,

    My elderly parents are both in care homes which we pay privately. One is residential and one is 24 hour care.

    The reason for my posting is we are shortly selling their property as they both will never return whilst they are still alive. Myself and my sister hold Power of Attorney for their affairs, including financial.

    We want to invest a substantial amount of money but I have had problems starting a savings account on my own, let alone as a registered Power of Attorney.

    Has anyone got any advice where is best to invest this as their normal bank has awful interest rates at 0.2% and the amount is well over the amount of FSCS per person protection of 85K per person?

    Thanks in advance
Page 1
    • Dazed and confused
    • By Dazed and confused 10th Nov 18, 1:33 PM
    • 3,209 Posts
    • 1,606 Thanks
    Dazed and confused
    • #2
    • 10th Nov 18, 1:33 PM
    • #2
    • 10th Nov 18, 1:33 PM
    How about NS&I?
    • RG2015
    • By RG2015 10th Nov 18, 1:38 PM
    • 1,458 Posts
    • 913 Thanks
    RG2015
    • #3
    • 10th Nov 18, 1:38 PM
    • #3
    • 10th Nov 18, 1:38 PM
    See the link below. 100% safe with NS and I.

    https://www.nsandi.com/our-products
    • Alexland
    • By Alexland 10th Nov 18, 1:49 PM
    • 3,645 Posts
    • 2,980 Thanks
    Alexland
    • #4
    • 10th Nov 18, 1:49 PM
    • #4
    • 10th Nov 18, 1:49 PM
    Yup and they do a helpful guide for POAs

    https://www.nsandi.com/system/files/asset/pdf/power-of-attorney-leaflet.pdf
    • Stubod
    • By Stubod 10th Nov 18, 2:11 PM
    • 525 Posts
    • 398 Thanks
    Stubod
    • #5
    • 10th Nov 18, 2:11 PM
    • #5
    • 10th Nov 18, 2:11 PM
    ..+ another for NSI. Money is safe and "reasonable" (in todays terms) rates...
    • xylophone
    • By xylophone 10th Nov 18, 3:08 PM
    • 27,343 Posts
    • 16,357 Thanks
    xylophone
    • #6
    • 10th Nov 18, 3:08 PM
    • #6
    • 10th Nov 18, 3:08 PM
    I have had problems starting a savings account on my own, let alone as a registered Power of Attorney.
    This is strange - my relative has PoA for his relative and has opened and runs savings accounts with NS&I, Coventry, Leeds, Virgin, Yorkshire Bank, Barclays Bank, Santander..... not to mention investments with HL and II.

    It is a matter of checking with each institution what its requirements are for opening an account as PoA and then providing a properly certified copy of the PoA.
    • Vortigern
    • By Vortigern 10th Nov 18, 3:08 PM
    • 2,601 Posts
    • 1,789 Thanks
    Vortigern
    • #7
    • 10th Nov 18, 3:08 PM
    • #7
    • 10th Nov 18, 3:08 PM
    The difficulty with opening accounts using your power of attorney is in providing proofs of name and address both for yourself and for the elderly parents. If they have driving licences and passports it may be worth renewing them, even if they'll never drive or travel abroad. Get them on the electoral roll at the care home. Ensure all letters from DWP are addressed to them at the care home. These letters are usually accepted as proof of address.

    Some banks will accept a letter from the care home manager as proof of address; some will not.

    Easiest route may be to stay with the bank where they are already customers.

    I assume both parents are claiming higher rate Attendance Allowance. This is not means tested.

    Investigate CHC funding for the parent requiring 24 hour care.

    I have POA accounts with Halifax and Leeds BS.
    • Albermarle
    • By Albermarle 10th Nov 18, 3:13 PM
    • 202 Posts
    • 100 Thanks
    Albermarle
    • #8
    • 10th Nov 18, 3:13 PM
    • #8
    • 10th Nov 18, 3:13 PM
    As you are dealing in large amounts of money you should be careful with terminology :
    Has anyone got any advice where is best to invest this
    When you invest it usually means putting money into risk based investments, such as shares, without any guaranteed return.
    Saving it means putting into a secure deposit savings account for an agreed rate of interest.
    • Linton
    • By Linton 10th Nov 18, 3:25 PM
    • 9,967 Posts
    • 10,253 Thanks
    Linton
    • #9
    • 10th Nov 18, 3:25 PM
    • #9
    • 10th Nov 18, 3:25 PM
    NSI is the simplest option to achieve a moderately reasonable interest rate and could never be seen as inappropriate for PoA.


    However you could safely get a higher return for some of your parents money if their pot was larger than say 1-2 years of care home costs. The idea would be that you put 1-2 years care costs in an instant access NSI account. For the rest you could put another 1-2 years in 1 year fixed term accounts and any thing beyond that in 2 year fixed term accounts which could provide twice the interest rate available from NSI. In principle you could extend this to say 4 year accounts but you have the consideration of their life expectancy. The fixed term accounts would be protected to 85K.
    • xylophone
    • By xylophone 10th Nov 18, 4:03 PM
    • 27,343 Posts
    • 16,357 Thanks
    xylophone
    Investigate CHC funding for the parent requiring 24 hour care.
    The OP may find that despite the 24 hour care requirement CHC funding is still not granted.

    Relative's relative is rising 97, deaf, cannot walk, doubly incontinent, needs washing and dressing and suffers from progressive dementia that makes communication very limited but qualifies only for the Nursing Care Contribution and higher rate AA.
    • Alexland
    • By Alexland 10th Nov 18, 6:35 PM
    • 3,645 Posts
    • 2,980 Thanks
    Alexland
    However you could safely get a higher return for some of your parents money if...
    Originally posted by Linton
    Maybe but I get the impression from the OPs post that NS&I is probably the most suitable option for their situation and experience. Sometimes it's more important to get it right than complicate things chasing return.

    Alex
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