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    • DeanYorks
    • By DeanYorks 10th Sep 17, 9:52 AM
    • 15Posts
    • 2Thanks
    DeanYorks
    Where do I put my inheritance
    • #1
    • 10th Sep 17, 9:52 AM
    Where do I put my inheritance 10th Sep 17 at 9:52 AM
    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!
Page 1
    • Drp8713
    • By Drp8713 10th Sep 17, 10:02 AM
    • 750 Posts
    • 620 Thanks
    Drp8713
    • #2
    • 10th Sep 17, 10:02 AM
    • #2
    • 10th Sep 17, 10:02 AM
    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.
    • DeanYorks
    • By DeanYorks 10th Sep 17, 10:36 AM
    • 15 Posts
    • 2 Thanks
    DeanYorks
    • #3
    • 10th Sep 17, 10:36 AM
    • #3
    • 10th Sep 17, 10:36 AM
    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
    • bigadaj
    • By bigadaj 10th Sep 17, 11:01 AM
    • 10,736 Posts
    • 7,025 Thanks
    bigadaj
    • #4
    • 10th Sep 17, 11:01 AM
    • #4
    • 10th Sep 17, 11:01 AM
    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
    Originally posted by DeanYorks
    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.
    • Alexland
    • By Alexland 10th Sep 17, 11:02 AM
    • 696 Posts
    • 436 Thanks
    Alexland
    • #5
    • 10th Sep 17, 11:02 AM
    • #5
    • 10th Sep 17, 11:02 AM
    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.
    • DeanYorks
    • By DeanYorks 10th Sep 17, 11:17 AM
    • 15 Posts
    • 2 Thanks
    DeanYorks
    • #6
    • 10th Sep 17, 11:17 AM
    • #6
    • 10th Sep 17, 11:17 AM
    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.
    • DeanYorks
    • By DeanYorks 10th Sep 17, 11:17 AM
    • 15 Posts
    • 2 Thanks
    DeanYorks
    • #7
    • 10th Sep 17, 11:17 AM
    • #7
    • 10th Sep 17, 11:17 AM
    Cheers Alex
    • Mojisola
    • By Mojisola 10th Sep 17, 11:21 AM
    • 28,549 Posts
    • 72,712 Thanks
    Mojisola
    • #8
    • 10th Sep 17, 11:21 AM
    • #8
    • 10th Sep 17, 11:21 AM
    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.
    Originally posted by DeanYorks
    Not all benefits are means tested so you may be able to keep claiming some of them.
    • DeanYorks
    • By DeanYorks 10th Sep 17, 11:24 AM
    • 15 Posts
    • 2 Thanks
    DeanYorks
    • #9
    • 10th Sep 17, 11:24 AM
    • #9
    • 10th Sep 17, 11:24 AM
    Cheers mojisola.
    • sjp999
    • By sjp999 10th Sep 17, 11:34 AM
    • 19 Posts
    • 23 Thanks
    sjp999
    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.
    • DeanYorks
    • By DeanYorks 10th Sep 17, 11:40 AM
    • 15 Posts
    • 2 Thanks
    DeanYorks
    Cheers sjp999. Some good sound information there for me to consider. Much appreciated.
    • Carrieanne
    • By Carrieanne 10th Sep 17, 12:29 PM
    • 69 Posts
    • 69 Thanks
    Carrieanne
    If Housing Benefit is a benefit you are in receipt of then then a different route is being considered by a relative discussed in the topic linked below who's due to inherit a similar figure.

    http://forums.moneysavingexpert.com/showthread.php?t=5707084
    • DeanYorks
    • By DeanYorks 10th Sep 17, 12:47 PM
    • 15 Posts
    • 2 Thanks
    DeanYorks
    Hey thanks for that CarrieAnnie. That was an interesting thread and very helpful. Cheers!
    • Eco Miser
    • By Eco Miser 13th Sep 17, 8:33 PM
    • 3,181 Posts
    • 2,948 Thanks
    Eco Miser
    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.
    Originally posted by DeanYorks
    Sadly, for someone in your position this is likely to happen. You will live off your capital, and the interest it generates, until it reduces sufficiently to claim benefits again. Accept this, but do your best to make the money last and to get more from it than just replacing your benefits.

    You face a big change in finances - instead of receiving just about enough to live on each week or month, you have an apparently vast fortune from which you will pay your way for the next several years (or the rest of your life if things work out well). Try not to be intimidated by the wealth, nor tempted to spend, spend, spend on luxuries.

    Work out how many years' living expenses £80,000 represents.
    Put two or three year's expenses in the highest paying accounts you can get, as already mentioned. Live off that (current accounts pay interest monthly, regular savers pay annually, others you may have a choice, but it doesn't really matter as you will have plenty available for short-term needs).

    Consider putting the remaining money into investments (which could lose capital, but will probably, in the long term, make rather more than interest paying, capital guaranteed accounts will) either in conventional stock market investments (using collective investments "funds", not buying shares in individual companies) or in P2P lending. There are many threads on this forum about both of those options. Use S&S ISA or IF ISA as much as possible.

    Also consider whether you could improve your prospects of a job by spending some of this money on improving yourself.
    Eco Miser
    Saving money for well over half a century
    • DeanYorks
    • By DeanYorks 14th Sep 17, 7:04 AM
    • 15 Posts
    • 2 Thanks
    DeanYorks
    Thanks for the good advice Eco Miser. Fortunately I have never been a very materialistic person so it's unlikely the funds would disappear on material things or being frivolous generally. This site has been a great help too. Cheers.
    • atush
    • By atush 14th Sep 17, 3:32 PM
    • 16,334 Posts
    • 10,083 Thanks
    atush
    I would also consider opening a pension. Youc an out in 2880 per year, whch tax releif is added so becomes 3600. This money is not means tested. But can be drawn by you as income from age 55+

    So 3 years living expenses, a pension, a small business to provide income, or improving your skills.

    Excess to be put aside for pension contribs next few years, and perhaps a S&S isa, investing in a global tracker fund or multiasset like Vanguard
    • DeanYorks
    • By DeanYorks 15th Sep 17, 12:45 PM
    • 15 Posts
    • 2 Thanks
    DeanYorks
    Thanks Atush. That was a very helpful and thought provoking reply. Will definitely be doing some research on private pensions now. Cheers!
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