Where do I put my inheritance
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DeanYorks
Posts: 28 Forumite
Hi, can someone please give me some help and advice. I am about to inherit £95,000 due to a bereavement. As I am currently on benefits, I will be writing to DWP and the Council to inform them that I will be well over the £16,000 limit, and therefore no longer entitled to receive any help. This is perfectly understandable and I accept this.
Despite having some health issues which are making it difficult for me to find work, I am going to have to try my hardest to find some form of employment. However, in the meantime I need to put my inheritance somewhere where it is going to make the most interest, or it will gradually disappear over time. I would be devastated to lose it all and want to avoid this happening.
I have been looking at different bank accounts and it appears that many current accounts are paying better interest than savings accounts (if you pay in certain amounts each month). Obviously I want the funds to be covered by the FSCS which is very important. However, I am a complete newbie when it comes to handling money, and don't seem to be able to find the guidance I need. I have been to the citizens advice, but they didn't want to get involved.
I would like an account(s) which would pay interest monthly if possible. If anyone out there could give me some advice it would be very much appreciated!
Despite having some health issues which are making it difficult for me to find work, I am going to have to try my hardest to find some form of employment. However, in the meantime I need to put my inheritance somewhere where it is going to make the most interest, or it will gradually disappear over time. I would be devastated to lose it all and want to avoid this happening.
I have been looking at different bank accounts and it appears that many current accounts are paying better interest than savings accounts (if you pay in certain amounts each month). Obviously I want the funds to be covered by the FSCS which is very important. However, I am a complete newbie when it comes to handling money, and don't seem to be able to find the guidance I need. I have been to the citizens advice, but they didn't want to get involved.
I would like an account(s) which would pay interest monthly if possible. If anyone out there could give me some advice it would be very much appreciated!
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Comments
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Could you invest some of it to start your own business and build something that will yield a decent income for you?
In this case I think the rate of interest you get is secondary to the fact it is going to be eroded by your living expenses.0 -
Starting a business or becoming self employed would be an idea. I am just unsure where to put the funds as soon as they arrive, as I only have a NatWest current account. Thanks for your reply0
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Starting a business or becoming self employed would be an idea. I am just unsure where to put the funds as soon as they arrive, as I only have a NatWest current account. Thanks for your reply
Have a look at the bank accounts and savings section on the main site, there's basically three options depending on how much effort you want to take and to an extent how good your credit file is.
Most lucrative option is to open a number of current accounts and regular savers, cycling money through them monthly to meet pay in requirements, this might get you an average return of maybe 2.5%.
Second option is to open a savings account, rates are slightly better for fixed term products, so you could split into bands so that you have some easy access, some fixed for one year, two years etc
Easiest option is to use ns&i, government backed so no need to worry about the fscs limits, their current products only pay 0,7% though.0 -
I agree thats a life changing opportunity and there might be real advantage in spending it on something such as training or starting a business that could give you an income for life.
In the short term there are bank accounts, isas and regular savers but none will give enough return to support your lifestyle.0 -
Thank you very much bigadaj. I have been looking at the different bank accounts and their interest rates. There are one or two banks I had never even heard of, such as Al-Rayan Bank, Paragon Bank, Atom Bank, Vanquis Bank and Shawbrook. They are all covered by the FSCS, but I guess I would feel more secure with well known high streets names. Once again, really appreciate your views.0
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Cheers Alex0
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Cheers mojisola.0
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Having been through this myself over the last year and a half... I came from a working situation so my ability to open the better interest current accounts might have been an easier task than you might face. Hopefully not but be prepared just is case.
Safest place for the whole lot, NS&I - all 95k protected
Once that's sorted I'd try for a Santander account, 1.5% for a fiver a month which you should be able to cover with the qualifying cashback on the direct debits you currently pay - plus the ones you might now be facing, council tax perhaps? When I did this I didn't have to switch, not sure if this is still the case.
If this is all you can do then be happy that you’ve done as well as you can given your circumstances.
If you can open further accounts... Figure out your annual expenses and layer the remainder in 2, 3, <more> year accounts. Your next lot of annual expenses would come from the next maturing account on an annual basis, move from that account into the Santander account.
I've ignored cask ISA's as you're unlikely to exceed the 1k savings interest annual allowance.
If you're so inclined, your "last" years money (which should be at least 3 years away) you might want to consider a low cost stocks & shares ISA. This should get you more than your cash accounts (keep in mind the past performance is no indicator to future performance caveat). As an example, I have last year's full allowance and half of this year's is currently hovering around 4.5% which I don't feel is too bad when I effectively consider it to be a cash deposit. Keep an eye on it and have a cash ISA in mind to transfer it into should you feel things are heading in the wrong direction.
I'm going to include the following just in case it's required - I'm just a voice on the Internet and this should not be considered as personal advice. Hopefully others will have other ideas, and not pick apart mines too badly
Sorry for your loss and good luck with whatever you decide to do.0 -
Cheers sjp999. Some good sound information there for me to consider. Much appreciated.0
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