If you have not done so already why don't you have a flick through the moneysupermarket MONEY (click dark blue top of page) SAVINGS and look at all the options - default easy access at £250 and don't forget 50's and ISAs. Roughly speaking you can get around 6.0% on online easy access accounts and up to about 6.5% on one year bonds. My suggestion is that at their age and with the bond market biased towards one year I wouldn't go longer. Informed guesstimates say that interest rates may well rise another 0.25% in the not too distant future.

My mother and father in law have 35 grand from a house sale . They are 75 years old and renting a nice little bungalow from me and my wife . They want to invest the money and draw down 145 pound a month to help subsidise the rent . The quotes on the return they would get with HSBC AND HALIFAX doing it this way are not good circa 32 grand back after 5 years, at a estimated growth of 4 %.(could be higher if growth is 6 -7 -8 ?)

 I think because of there age etc they would be better off just leaving it in a garanteed bond for 1 year then revisit the decision yearly (i'm even thinking of giving them the 1750 quid to subsidise the first year)

 

Your collective thoughts please