Inheritance Money - Best account for this?

Bertrand

Hello all,

Have been a reader on the forum for some time, has helped me numerous times

I was hoping someone could help me with a question. Forgive the naivete but I'd just like to get some opinions on this.

I've recently inherited around £35k. I'm going to be clearing off some debts with some of this and making a few purchases (in all perhaps a total of 10k on debt clearing and purchases).

I'm curious as to what would be the "best" account type to put this in. I've had a quick read of some high interest bank accounts but most of these appear to make it difficult to withdraw/use the funds.

A friend of mine recommended an ISA but unsure if they are really worth it for this sort of sum.

If someone would be kind enough to throw some recommendations my way, and perhaps a pointer as to what banks to look at, I'd really appreciate it.

Thanks

jennifernil

An ISA is a good idea, you then get your interest tax free. The amount you can pay in is limited however, £5100 this tax year, £5340 next tax year. (You can also invest in a stocks and shares ISA).

You should be able to earn at least 3% in an ISA.

For instant access savings, I use the Lloyds Vantage accounts. These are actually current accounts, but they pay interest. On a deposit of £5000 to £7000 they pay 4%. You are allowed 3 of these accounts. The requirement to deposit £1000 per month can be met by setting up standing orders to transfer funds between accounts.

http://www.lloydstsb.com/rates_and_charges/current_account_rates_curr_page.asp

DrSyn

"Best for you" depends on a number of things.

Your age, tax bracket, do you want get at the money straight away, are you happy to move the money via the internet, etc.

Having an ISA for most people is thought a good idea.

Remeber "no one will care about your money as much as you"

Always do your own research, good places to start are

1. The Banking & Saving section on this www.moneysavingexpert.com/banking/

2. www.moneyfacts.co.uk

3. www.thisismoney.co.uk/savings-and-banking

Remember the banks in Iceland! The highest rate is not the most important thing with a savings account. Being able to get money back from it is.