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Best Account For My Dad's Cash?

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All,

My old man has got some savings in a fixed rate bond with the local Building Society. I think this ends in January so I want to try and advise him on the best place to put it. I am not sure how much but I would say it is over £10K and under £40K.

The possible problem will be the fact that he is not going to want to break away from his BS. He has always done it that way, if you get my drift.

I am keen to suggest splitting it across a few different products etc. I will suggest some gold and/or silver but I am not sure what is view will be.

I thought NS&I but don't know enough about it.

He is fairly (perhaps only slightly?) clued up about money/financials but I am worried that the current mess the country is in might catch him out good and proper.

If you have questions I will try and answer and/or find out.

Thanks,

VB

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All,

My old man has got some savings in a fixed rate bond with the local Building Society. I think this ends in January so I want to try and advise him on the best place to put it. I am not sure how much but I would say it is over £10K and under £40K.

Is he saving for something or using income from the savings?

If income, you could consider a long-term income-generating investment such as bonds, PIBs or prefs. If saving for something, go for whatever suits the timeframe. In either case, don't forget the ISA allowance.

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If he is happy in cash then it may be difficult to get him to change anf maybe unwise.

All I would add is that I wouldn't want to be in any sort of long term bond with inflation a possibility some point down the line.

I hear you.

What about NS&I index linked at that rate. I don't know the subject enough though. Linked to inflation? What CPI, RPI?

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Is he saving for something or using income from the savings?

If income, you could consider a long-term income-generating investment such as bonds, PIBs or prefs. If saving for something, go for whatever suits the timeframe. In either case, don't forget the ISA allowance.

As far as I am aware, he is not saving for anything. Everything is all bought and paid for.

PIB's, prefs? Please explain.

Ta.

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I would be cautious about putting into any sort of investment, risky or otherwise. If for whatever reason it goes t*ts up it'll put a strain on your relationship. Even something as safe as UK gilts is at risk from inflation at the moment. And as for gold/silver - Have you seen how volatile commodities of all types are?

Just get the best one-year bond you can. Generally the building societies and/or santander (abbey / alliace+leceister) are best. If it's less than 50k you can go anywhere and feel secure in fsa guarantee.

As a third way you could go for a stock-market linked fund that guarantees capital? Generally such things require 5 year investment - shouldn't be a problem in your dad's case. Despite the current mini-bubble in stock markets they're still a good buy long-term, the ftse being way below its 2007 peak. Check out aviva's structured capital-guaranteed funds or the co-operative bank's.

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