Best Banks For Investing 1 Million

[cleoval]

Can anyone recommend a Government regulated Bank best for investing 1 million pounds for a relative.? She wants an account that pays good interest.Not interested in stocks and shares.

[andy-hughes]

With that sort of money, you need the advice of a professional financial adviser.

Contact your own bank for advice.

[bobbinwales]

//She wants an account that pays good interest//
What does she mean by good? 1%? She needs more than one account for protection and so some can be on easy access/ and some tied up for periods of 1,2 and 5 years.

[Mozz71]

Wait, that "relative" isn't a Nigerian prince is it?

[bobbinwales]

No mention of that here Mozz.
Not sure what's happening with the other million

[Hopkirk]

Cleoval, you know full well that Nan said to keep it quiet.

[bobbinwales]

Sozz Mozz- forgot the link
https://www.theanswerbank.co.uk/Business-and-Finance/Personal-Finance/Question1755643.html

[Mozz71]

It's alright for some Bob. I'm not jealous or anything. No Sirree. *goes green*

[Buenchico]

While you might think that banks would welcome people investing large amounts of money with them, many place limits upon how much can be used as a deposit to open an account. (With some accounts, that figure can be as low as £1,000). So your relative's range of choices isn't actually as wide as you might expect.

Further with the official Bank Rate currently at an all-time low of just 0.1%, no bank is able to offer particularly generous rates at the moment. If your relative is prepared to lock her money away, without access to it, for a full five years, the highest rate she can currently get (for such a large investment) is 1.55% with Shawbrook or UBL. If she can only lock her money away for a year, Shawbrook, at 1% is her best option. If she can only lock it away for 120 days, then Secure Trust, at 0.75%, offers the highest rate available to her. If she wants instant access to her money, Cynergy, with 0.5% is the best available offer at the moment.

With inflation (as measured by the Consumer Prices index) currently running at 2.1%, that means that there is NO bank that can offer an account where the value of her money won't actually DROP (in real terms) over the forthcoming years.

It's also worth remembering that just because a bank is 'Government-regulated', it won't help much if the bank you've invested £1m with goes bust. The limit for Government protection is £85,000 for each bank that a customer has an account with. So it would be wisest to spread the £1m across multiple banks.

Information sourced from here:
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

[Buenchico]

PS: If I had £1m to invest at the moment, I'd buy four houses at £250k each and treat the rental income as interest. Then (going by the way that house prices are rising at the moment), I could sell them in just a few years time for perhaps 20% more than I paid for them, on top of the 'interest' that I'd already earned from them.

[KARL]

There is Chris' preferred option but you seem to be saying the money must in effect be kept as cash. I would put most of it into foreign currency, probably Swiss Francs but splitting it up is also an option. Long term I would not keep it in Sterling. Interest is more or less universally low and it does not keep up with inflation so keeping money in cash is a waste of a resource. Putting a sum of this size into some investment fund or having it managed would make far more sense. Again, I would place it into a managed portfolio but not in the United Kingdom.

[Hopkirk]

I would investigate how much I could put into my pension fund.

[Peter Pedant]

BA for andie hughes ( "hewsie" plays a blinder)
This is lot of moolah and I douibt if anyone has that amount in cash


Bank rate ( MLR ) is 0.1% set today and so the amount of money in interest on a million is £1000 per year - I wd call this piffle

you need advice - - and not from us!

[Thisoldbird]

Interesting info. I might need to consider this same question next week if I'm fortunate enough to get the call from the Premium Bond agent confirming I'm 1 of the 2 July Millionaire winners...

We can but dream haha..

[bednobs]

Wow thisoldbird that'll be two of us on answer bank winning the bonds. What a coincidence :)

[davebro]

"Not interested in stocks and shares."

Why not? Apart from property - being a landlord has become less attractive more recently - a considered investment in stocks & bonds should far outstrip any interest that could earned from keeping the money as cash. Get professional advice.

[webbo3]

speak to her ban or a financial advisor

[Hopkirk]

Cleoval, what has your cousin done with the other million?

[DTCwordfan]

spent it on piggy banks, hopkirk....