Im 20 and dno what to do with my inheritance, please help!!!!

calypso_rhapsody

I'm not sure i would agree with the comment that it would be a good idea to use this year's ISA allowance ... if you think you will want to call on the funds when you graduate then you will lose the advantage of the tax shelter before it has any real value to you. So i would look at this route only if you think you may want to keep the money in savings or the gross rate is as good as you can get outside the ISA wrapper.

Also not really sure that regular savings accounts are ideal for your situation - yes they do have a higher interest rate but they are not really designed for those with a lump sum to put away - the amount you can save into them each month is generally limited to about £250 (it does vary so check each one) - so that's an average balance of £1500 earning the high rate for a year. And you need somewhere to put the rest of your money that you can transfer out into the regular saver ... probably an instant access account paying only 3% and the risk that you may be tempted to raid the pot. Compared with 3.8% fixed for 2 years and no risk of temptation ..... interesting comparison.

Of course you can mix and match! And i think there is one regular saver that does allow you to put £5k in as a starting deposit which might be attractive to you.

gadgetmind

calypso_rhapsody wrote: »

And i think there is one regular saver that does allow you to put £5k in as a starting deposit which might be attractive to you.

That's the Santander First Home Saver, but there is a "work around" that lets you slam up to around £40k in during month one/two.

dtsazza

calypso_rhapsody wrote: »

I'm not sure i would agree with the comment that it would be a good idea to use this year's ISA allowance ... if you think you will want to call on the funds when you graduate then you will lose the advantage of the tax shelter before it has any real value to you. So i would look at this route only if you think you may want to keep the money in savings or the gross rate is as good as you can get outside the ISA wrapper.

It's true that if the funds end up going somewhere else (e.g. a house deposit) then there was no benefit to putting them inside the wrapper for the interim. But then again, if the ultimate decision is to hold an instant-access cash deposit as a rainy-day fund, and/or to invest some money in stocks & shares for the longer term, then having a head-start on the money inside the ISA is potentially very useful. It's a question of the opportunity cost - what you're definitely giving up in the immediate term, in exchange for the potential gain in not paying taxes on that money forever.

This is especially relevant given that for whatever reason, cash ISAs tend to offer similar or better rates than equivalent savings accounts - 3.3% vs. 3.1% for easy access, 4.26% vs. 4.3% for a 3-year fix, 5% vs. 5% for a 5-year fix. So in the general case you're not losing out that much, especially as in this case it would likely be easy-access accounts that are used.

Also not really sure that regular savings accounts are ideal for your situation

The Santander one has a loophole whereby you can deposit a very large amount in the first month, which means you get paid no interest that month but get the 5% on the balance for all months thereafter.

The FD one admittedly will only have an average balance of £1950, though at 8% interest this is still a difference of £57.60 p.a. over the Santander one. I do appreciate that this may not be considered worth the effort involved, especially given the size of the total pot, but it's not a trivial return for opening a couple of accounts and setting up a direct debit...

Lokolo

You would need to continue depositing £100 a month though, so I reckon if you put £35k, then drip feed the last £5k over the next 2/3 years.

de1amo

i get 9,25pc on my savings with hsbc--just have to have an account in turkey!

opinions4u

de1amo wrote: »

i get 9,25pc on my savings with hsbc--just have to have an account in turkey!

If I've done my sums right, £1 was 240 tk lira a year ago and is 263 tk lira today.

So £1,000 saved in Turkey would be worth 262,600 tk lira after 9.25% interest, assuming no currency conversion costs.

£1,000 saved at 2% in th UK would be worth £1,020. Convert that in to tk lira now and you get 268,260.

So you'd have been better off keeping your money in Britan.

property.advert

krisknox1 wrote: »

thanks to all for your ideas, basically yer im studying business for another two years. i didnt want to spend my inheritance on my fees, hence why i took a student loan. I really want the best for the money, as im sure my father would have been disappointed to see my waist it.
there are so many different roads i could go down. just have to research abit more and make a decision ......

May I respectfully suggest you take some remedial English courses, then basic ABC spelling and grammar and probably Mathematics 101 as you seem unable to put together a simple sentence.

krisknox1

property.advert wrote: »

May I respectfully suggest you take some remedial English courses, then basic ABC spelling and grammar and probably Mathematics 101 as you seem unable to put together a simple sentence.

your not my spelling teacher, I have asked a question to get some guidance! not for you to start throwing accusations at me! I'm not writing a essay on here it hasn't got to be 100% right.
get a life! because you obviously don't have one sitting there picking up on people grammar!!!!
:mad:

atush

property.advert wrote: »

May I respectfully suggest you take some remedial English courses, then basic ABC spelling and grammar and probably Mathematics 101 as you seem unable to put together a simple sentence.

Harsh. True, but still harsh.

My advice is put the max (15K) in the NSI fund that tracks inflation. Pay off all debt. Put a few K in an emergency easy access fund. And ISA if that is the highest interst, and elsewhere if not. Fill out your R85s for all accts. Put the rest into the best 2 yr bond you can find. Then you can re evealuate when you have graduated and get a job.

And don't tell your mates or GF you have the money. :eek:

And again, it is fantastic you aren't thinking of blowing it! Well done on starting a life w/a good financial footing.

Sceptic001

property.advert wrote: »

May I respectfully suggest you take some remedial English courses, then basic ABC spelling and grammar and probably Mathematics 101 as you seem unable to put together a simple sentence.

Your arithmetic has proved less than perfect in this thread, property.advert...

People in glass houses...;)