What to do with inheritance? Advice appreciated.

ConfusedSarah_2

Hi all,

I'm looking for advice on how/where to invest an inheritance. I have signed up for two (me&hubbie) Santander 3.3% AER cash ISAs and have a further £10k to invest.

I am not too savvy or up on all the lingo so am getting a bit baffled!

We will not need access to this money for at least a year (2 if investment really worth it).

We are happy to take a calculated risk (stocks/shares) or have a really good return.

I am currently a non-taxpayer as I raise our young family - my husband is a higher-rate tax payer.

Any advice much appreciated.

Cheers!

atush

Too bad you had already donme the ISAs.

you may have doe better with the NSI linex linked savings certs that pay inlflation +. 5 year investments that can be accessed after one year w/o penalty.

Ark_Welder

atush wrote: »

Too bad you had already donme the ISAs.

you may have doe better with the NSI linex linked savings certs that pay inlflation +. 5 year investments that can be accessed after one year w/o penalty.

Depending upon the rate of inflation over the next year, compared to interest rates over the next year.

The Santander ISA tracks BoE + 2.8% for 12 months, so if interest rates rise and rate of inflation comes down then the ISA could be better.

There is still the option of the index-linked certificates with the £10k. Or instant access, or 1 or 2 year fixed-rate accounts - in ConfusedSarah's name due to being the non-taxpayer (so remember to register for gross with form R85). If the time horizon is a maximum of 2 years then cash is preferable.

Trentenders

If you're more comfortable with savings accounts than other investment options, perhaps stick the rest into a savings account until April, when you can then transfer it into next year's ISA allowance.