Can you still get over 4+% interest safely?

[Backtobasics]

My parents are 100% risk averse and have a sum of money they need to invest, bank rates are poor and will stay like that for the next 4+ years in my opinion. Is it possible to get a guaranteed rate above the bank rate safely?

I asked a similar question in feb and got pointed to fundsmith, obviously there is an element of risk there as far as I can see. I have seen various company derived bonds that pay 5+% again they will have risk attached.

[ringram]

Zopa's guaranteed safe thingy is paying 4.7 at present, was 5.2 recently.
Its not FSA, but they do have an insurance fund to guarantee that rate.
Diversify your risk, but Id put some here IMO. Ratesetter also has a similar model which pays 4.5 IIRC.

[98elise]

You're going to struggle, banks are lending at 4%.

How about property, you will yeild 6-7%, and if financed it will be closer to 10-15% ROI.

[jeff m2]

For a Sterling investment I would be looking for something inflation linked.

It's always difficult when it's somebody elses money, but maintaining it's value should be the priority.

[Dave 500]

I have been using Funding Circle for just over a year now and have a return of 6.1%

That includes losses (which I have had a few) and fees.

The key I think is small amounts to loads of different people.

[CaptainSensib1e]

There's no such thing as a safe investment, even cash has inflation risk attached. If you're holding cash at the moment if you're definately losing money in real terms. And if inflation takes off, which could happen, the value of your capital will really get hammered.

So, in a nutshell, there's no way of getting a safe return on your capital excess of inflation. If it was my money I'd be putting what I need aside in cash for emergencies, and using the rest to buy equity income funds. A lot of people will argue that the captial fluctuates, which is true, but the income stream is far less volatile and if that is your primary concern then what your capital is doing is fairly academic.

[Backtobasics]

Some good advice there, thanks.