Just received my inheritance...

vaderag

I just received my inheritance and I'm not sure what to do it to get the best from it.
It's a significant amount, more than could be drip fed into a regular saver or an isa, and more than i'd be happy keeping in a single account, but i obviously want it to be safe and to get the most.
I'm prepared to invest a few k of it (tho need to look into it alot!), and i want to have access to the rest. Also, i want to put the bits i'm invesing into the savings to start with.

So, can anyone tell me what the best solution is for me?

Thanks very much!

[Deleted User]

Hi,

I'm not sure about investing however for saving I'd suggest the following:

1. Generally ISA's are a good place to start:

http://www.moneysavingexpert.com/sav...gs-without-tax
and http://forums.moneysavingexpert.com/....html?t=401374

2. Regular savings accounts are good too:

http://www.moneysavingexpert.com/sav...vings-accounts
and http://forums.moneysavingexpert.com/....html?t=608697

Regular savings accounts are generally a good place for new money e.g. monthly pay cheques, however if for example you have £3k in a 6% high-interest bank account drip-feeding into a 10% regular savings account then you're essentially getting 8% interest on average for your £3k which beats most fixed rate products - albeit with a bit more work.

3. If you want something with a little less work then fixed rate savings accounts are a good option:

http://www.moneysavingexpert.com/sav...interest#fixed
and http://www.thisismoney.co.uk/saving-...&in_page_id=50

4. One other thing you might like to consider is getting a decent instant access savings account:

http://www.moneysavingexpert.com/sav...st#topaccounts
and http://www.thisismoney.co.uk/saving-...&in_page_id=50

5. Finally if you're a higher rate tax payer then NS&I's 3 and 5 year Index Linked Savings (http://www.nsandi.com/products/ilsc/index.jsp) look good, paying 1% above the RPI inflation rate. Currently this is 5.0% so that’s a rate of 6.0% overall.

The attractiveness of these is that the savings are tax-free meaning it's better for higher-rate taxpayers. Basic rate taxpayers would need to earn 7.5% in a normal savings account to match this, while higher rate taxpayers would need a 10%.

One thing to note is if inflation drops then so does the rate for these savings. It'll always be higher than inflation and tax free though.

isofa

As you are generally talking about savings (max out ISA first), have a look at all the best accounts listed at MoneyFacts. Personally I'd spread it between a few different types of accounts, some in high rate instant access, some in fixed term accounts "bonds", you could look at the Index Linked Savings from NS&I as davidmt83 mentions above too.

If you want to invest some (i..e non-savings, but with a risk profile), I'd consult an IFA to help you choose from the millions of options available.

vaderag

Thanks for the advice guys - fair bit for me to go through there tomorrow, but seems to make a lot of sense at first glance!

The Index Linked Savings seems like a good idea, although i'm not sure i want to lock it in for 3 years...

vaderag

Just had a thought... should i pay off my student loan? Or just forget that even exists for the time being?

vaderag

vaderag wrote: »

Just had a thought... should i pay off my student loan? Or just forget that even exists for the time being?

Seems like that would be a no!...
http://www.moneysavingexpert.com/loans/student-loans-repay