what to do with inheritance?

shopgirl771

ok so following on from my previous posts about getting a mortgage post BR looks like thats now on the back burner so what do i do with my inheritance in the mean time?

i really am clueless about whats available to me or where i can go to find out:o

i had an isa years ago but it actually lost money so thats put me off that a bit. i dont want to risk losing money so nothing high risk.

ideas please???

qpop

If you don't want to lose money, find the highest interest-paying cash ISA and deposit £5,340, then deposit the rest (as long as < £85k) in the highest paying savings account (links available at the top of this page).

Lock the money away if you are sure you won't need it, but if you're considering buying a house at some point easy access would probably be preferable. Wouldn't want to have to choose between a perfect house and the interest on your inheritance.

Don't listen to anyone who says "want a low risk investment? Why not try gold/silver/trees/FTSE trackers/spread betting/forex/horse racing" - If your main criteria is that you don't want any risk of losing money (short of institutional failure of the banking system/government bailout failures) then stick with cash.
(disclaimer: I've not read your previous post, so only have the above to go on)

atush

And keep saving.

Drag1

If you are asking what to do with the money I presume you mean that you don't just want to put it into a bank account and wait for a small yearly interest payment. Honestly, I would take a portion of it and find the best industry to invest it in - sorry. If you are happy with the interest you will get from the bank then the best option would be - don't do anything. Just sit on it for a while until you figure out what to do.

xylophone

Shopgirl doesn't need to accept peanuts! Admittedly interest rates are not brilliant but since it seems unlikely that she will be able to obtain a mortgage for at least a year, surely she would be better off doing as qpop suggests?

Incidentally shopgirl, I see that you only work 10 hours a week so your salary may well not be using all your tax free allowance (£7475 2011 -2012, £8105 2012-2013)- you need to calculate whether the gross interest you receive from savings when combined with your salary brings you over this amount - if not, you should complete form R85. If it does of course, you can't.

However, if your total income (salary plus savings interest) is less than your tax allowance plus £2560 (the 10% savings band for 2011- 12, might increase in 12-13), then some or all of your savings income will be taxable at 10%.

See HMRC guidance here http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm (putting in the updated allowance figures). There is also information about claiming tax back.