You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
We’re currently selling a property for an elderly parent who is in care – through a Court of Protection Order.
From the proceeds we will have significant care home costs to pay (back dated by 2yrs) and also a £30k mortgage to settle. Not sold yet but likely will still leave a c£250k pot (reducing by £25k/£30k pa for ongoing care).
As deputies we will need some funds accessible (for those care costs) and then the balance to hold somewhere which is low risk, with reasonable returns and when ultimately it comes to probate, readily accessible.
Ultimately we need low risk, steady returns, and able to access again without too much heartache in a few years time.
Conscious too of the risk of an excessive balance sitting in a single bank account.
Are NS&I Premium Bonds the answer or should I look elsewhere too? Any downside to Premium Bonds?
i doubt a bunch of saturday night keyboard warriors will be able to give qualified advice. You need to speak to an expert i.e. an IFA
Premium Bonds are limited to £50K per person, equivalent to about 1.4%. Income Bonds allow up to £1 million, 1.15%.
If you don't need the money for a few years, you could get a better rate for a fixed term savings account. eg Guaranteed income bonds are 1.9%, for 3 years.
Without risk or a fixed term, you'll be struggling to get any kind of return of worth.
1.5% @ Goldman Sachs might be worth a look for instant access.
https://www.marcus.co.uk/uk/en
50k in premium bonds, 50 k in a high interest account, and the rest in capital gearing trust (CGT). Its a trust designed to preserve assets through good times and bad, which it does superbly, gaining even throygh the financial crisis.
Invest through hargreaves Lansdowne, sticking as much in an isa as you can each year.
H & L are doing fixed term cash now
presumably you are aware of the personal allowance care amount that is excluded from care costs
Thanks all.
Towzer, apologies "personal allowance care amount"? I'm not that familiar.
She currently receives her State Pension and also an Attendance Allowance.
My folks went through something similar with a relative. You've got to be able to show (if they ever ask) how you've 'responsibly' managed the money IIRC so stocks and shares are out (in case they crash). If it's likely to be for a relativey short period just suck up the fact that you won't get better than 1/1.5% interest.
I think that's where I am breatheeasy.
Also conscious of the savings protection limit at each bank (of £85k), so we'll have to spread the funds around several banks. Albeit at modest % rates.
^that comment about stocks and shares is rubbish.