Any sound advice on lump sum savings plans?

M

mishmash

Guest
Hello,

My folks were self employed for 30 years. They saved some cash, but unfortunately ( or fortunately! ) never invested in a pension. Now they are relying on me to advise them where to invest their 200k, to ensure it will not disappear overnight.

I am trying to educate myself on the various savings rates and the pitfalls therein. Truth be known, I am petrified I will advise them in the wrong.

Any simple sound advice, please & thanks.
 
You will find plenty or 'for's and against's' in the Investment part of this Forum. There are good and bad in every sector. Pick a direction and a mix of how your parents might wish to invest their money, together with an age profile etc.etc.

Remember do NOT and / or your parents be swayed by smooth Talking Salesmen who despite their best assurances are in it for THEIR commission and as soon as the cheque is cashed the client becomes a historical has being.
 
mishmash said:
Now they are relying on me to advise them where to invest their 200k, to ensure it will not disappear overnight.

I am trying to educate myself on the various savings rates and the pitfalls therein.
Click to expand...

1. Do you want a savings product or an investment product?
If you want an investment product then look on the investments forum.

2. Do you want a Fixed rate Term deposit or on demand savings product?
It would seem that a fixed rate term deposit would suit.
The best rates are
5.58% for 6 months TD with Investec or
5.25% for 1 year TD with Anglo Irish or
4.28% for 2 year TD with Halifax or
4.03% for 3 year TD with Halifax.
See here for more information: http://www.askaboutmoney.com/showthread.php?t=101813
 
Thanks for your informative response.

Definitely not an investment plan, too risky as my parents are now in their 60s.

I guess a mix of fixed term and demand woudl be the best option then. I will investigate the options you have given.

Thanks again!
 
No worries. If you going for an on demand account then Northern Rock have the leading product at 5.00%. They also have a monthly interest payment option if your parents need the use interest income monthly.
 
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