My plans for a £5k inheritance - advice?

Mr-T_16

Hi.

I've recently inherited £5k and just wanted some advice on what to do with it. I'm not looking to access it any time soon, and plan not to touch the money in the ISA unless it's an emergency.

After reading the Starting Saving guide, here's what I'm thinking:

* £3k into NS&I mini-cash ISA

* £1k into a standard savings account

* £1k paid off onto credit card

Is this the best I can do with my money in terms of making the most from it?

Thanks!

Debt_Free_Chick

What's the total debt you have?

Robert_Sterling

What rate of interest are you paying on your credit card.
If zero % then do not pay it off yet.
If it is more than about 5% considerr paying more than a £1000 off.
If it is in double figures i.e. 10% or more consider paying it all off.

Mr-T_16

£1000 would pretty much clear my card.

Is £3k in an ISA and £1k in standard savings the best I could do?

Robert_Sterling

It is a good move in my opinion.

baldbloke_2

Firstly clear the debt on your card if you are paying interest on that debt.

Then put as much as you can into the best Cash ISA you can up to the £3k linit - there are several offering 5% at present.

Then put whatever is left into a good interest instant access savings account

Of course you may have other debts which haven't been mentioned in which case their settlement should come even before the ISA.

But generally speaking you will not do better than you had originally suggested - providing that you approach things in the order suggested throughout the threads and posts on this forum and others.

And enjoy your newfound status as a debt-free man with tax-free savings to call on at some later date.

Simple solutions are not always the right ones and only you will know whether the answers given here really meet your needs.

Mr-T_16

Ok, thanks a lot guys. Appreciate the help