Help with where to put money for interest
Discussion
Hi all, my mum has 120k sat in an account earning about 1.5% interest. I’m looking for some help for her to get a bit more from her savings.
50k is hers and 70k is my nans for who she has power of attorney. From the 70k there is 4k going out every month for care home fees and approx 1.5k coming in (stating this as I know some accounts don’t allow you to take out money without being penalised on the interest rate etc).
My mum doesn’t want to put it into anything with a risk attached no matter how small. She is happy to leave her 50k in there for a year without touching it. She has mentioned premium bonds so this might be an option with some of it.
I was thinking something like 50k in a chase or chip savings account with her money but not sure about the other 70k.
I know we aren’t talking big money here but surely it’s worth doing something other than leaving it where it is at the moment.
Any suggestions much appreciated.
50k is hers and 70k is my nans for who she has power of attorney. From the 70k there is 4k going out every month for care home fees and approx 1.5k coming in (stating this as I know some accounts don’t allow you to take out money without being penalised on the interest rate etc).
My mum doesn’t want to put it into anything with a risk attached no matter how small. She is happy to leave her 50k in there for a year without touching it. She has mentioned premium bonds so this might be an option with some of it.
I was thinking something like 50k in a chase or chip savings account with her money but not sure about the other 70k.
I know we aren’t talking big money here but surely it’s worth doing something other than leaving it where it is at the moment.
Any suggestions much appreciated.
REM2112 said:
Big fan of premium bonds. Ok rate if you are a tax payer, instant access, secure and a bit of fun every month. Still waiting for the big one…..
Me too. Great for emergency cash.I had a win last month that was 20% of my holding. Should probably cash them all in now - that return will be hard to keep up :hehe!
First thing I'd do is separate your mum's and nan's money into their own accounts.
Not only will this make things easier / more transparent from a PoA admin perspective, but it'll also mean that all of the money gets FSCS protection (if the account run currently is solely in your mum's name, then only £85k is protected).
As suggested above, look on a comparison site for the best interest rates. If either your mum or your nan are likely to end up having to pay tax on their interest, then consider putting some or all of their funds into a cash ISA.
Trading 212 has been mentioned. Just bear in mind that its non-ISA product carries some risk.
Not only will this make things easier / more transparent from a PoA admin perspective, but it'll also mean that all of the money gets FSCS protection (if the account run currently is solely in your mum's name, then only £85k is protected).
As suggested above, look on a comparison site for the best interest rates. If either your mum or your nan are likely to end up having to pay tax on their interest, then consider putting some or all of their funds into a cash ISA.
Trading 212 has been mentioned. Just bear in mind that its non-ISA product carries some risk.
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