Inheritance and savings plans

Options
rca779
rca779 Posts: 436 Forumite
First Anniversary First Post
in Savings & investments
So I am in a very fortunate position of just inheriting a large cash sum following the sale of my parents house.

So I am looking for some advice with regards to savings.

My rough plan is to put approximately £80k into a three year savings plan of some form - a fixed rate bond maybe?

I want to put £20k into an account where I can make regular £500/month mortgage over-payments. I am in a fixed rate mortgage for the next 3 years so I can only over pay at present.

The £80k bond will then be used to pay off a great chunk of the mortgage once the fixed rate has finished.

I was then thinking of £15k in a cash ISA, but the rates are so rubbish that I am thinking there must be a better option.

I have been looking at the TSB & Lloyds current accounts that pay 4-5%, but you need regular payments in. Does the payment in have to come from my employer? Could I just set-up a regular payment from my other savings account?

Any advice would be greatly appreciated.

Comments

  • uknick
    uknick Posts: 1,625 Forumite
    First Anniversary Name Dropper First Post
    Options
    rca779 wrote: »
    .....

    I have been looking at the TSB & Lloyds current accounts that pay 4-5%, but you need regular payments in. Does the payment in have to come from my employer? Could I just set-up a regular payment from my other savings account?....
    It does not have to come from your employer. I recycle the money around various accounts using a standing order.
  • rca779
    rca779 Posts: 436 Forumite
    First Anniversary First Post
    Options
    uknick wrote: »
    It does not have to come from your employer. I recycle the money around various accounts using a standing order.


    Excellent, so I just keep the accounts topped up to their maximum by transferring money from a savings account and I can qualify for the 4-5% interest.
  • redux
    redux Posts: 22,976 Forumite
    Name Dropper First Anniversary First Post
    Options
    rca779 wrote: »
    Excellent, so I just keep the accounts topped up to their maximum by transferring money from a savings account and I can qualify for the 4-5% interest.

    If for instance there's a requirement for a few hundred quid a month coming in, people are setting up standing orders for that amount in, then out again.

    Likewise, some accounts require a couple of outgoing direct debits per month (as if to prove it's being used for regular expenditure). So make sure that's covered as well.
  • jimjames
    jimjames Posts: 17,621 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Options
    If you don't have any investments or pension isn't maximised it might be worth looking at those for a portion of the money.

    Cash ISA rates may be rubbish but plenty of good options for S&S ISAs if you are prepared to look longer term.
    Remember the saying: if it looks too good to be true it almost certainly is.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards