Some advice would be most gratefully received

stuart42_2

Unfortunately my mother recently passed away and i was left an inheritance of about £220,000. I would be grateful if anyone can advise the best accounts to maximise interest but also allowing for growth at the same time e.g £120,000 fixed rate bond, £100,000 savings account.I already have ISA's. Anyone good at number crunching most welcome!

brasso

With an amount like that, I would go to a reputable IFA to learn my options.

obsessed_saver

Buy a house/flat to let out.

nilrem_2

stuart42 wrote: »

Unfortunately my mother recently passed away and i was left an inheritance of about £220,000. I would be grateful if anyone can advise the best accounts to maximise interest but also allowing for growth at the same time e.g £120,000 fixed rate bond, £100,000 savings account.I already have ISA's. Anyone good at number crunching most welcome!

It depends on lot's of things, for example do you have other income from work or pensions or do you need the interest off this money to live on? If you need to use the interest you may like monthly interest rather than annual.

Another factor is your tax band, if in the 40% band this would change things somewhat.

Not knowing your circumstances makes it quite difficult to advise but assuming you placed £120,000 in a decent fixed bond with monthly interest (for ex Birm midshires) 4.98% after tax @20% deducted that would bring in £5928 per year paid as £494 per month. the other £100,000 if in say Icesave @ 4.63% monthly after tax would bring £4630 per year, £386 per month approx.

Personally I would put more into the fixed rate bond and perhaps £50,000 into a savings account but either way IMHO you would be best to place it in a quickish access savings account for a few weeks to see what the interest rate does in July, you don't want to tie it up in a fixed then find out the day after that the rate increases by 0.25%, but you have to act some time and it's no good waiting too long for that magical best rate, FWIW The Bank of England meets on 5th July to decide the next rate.

As I say though without knowing more details it is difficult to answer your question.:)

Disclaimer I am not an IFA so it's best not to depend on any advice I give, I am just saying what I would do.

Moorepart

stuart42 wrote: »

Unfortunately my mother recently passed away and i was left an inheritance of about £220,000. I would be grateful if anyone can advise the best accounts to maximise interest but also allowing for growth at the same time e.g £120,000 fixed rate bond, £100,000 savings account.I already have ISA's. Anyone good at number crunching most welcome!

Totally depends on how risky you want your 'portfolio' to be.

Play safe and max out Isa's,(as you have), premium bonds, NS&I bonds for tax-free returns (a must if you pay 40% tax). The rest can fetch 6% in Icesave or similar. OK, so inflation erodes it,get riskier with some commodities...

If you have family members you trust that dont work, you can give the money to them, they bank it, and then you would not pay tax on it (as long as interest is lower than the base rate of income tax ect),but the draw back Is,they're liable for IHT if they get hit by a bus within 7 years:sad:.

If I had a wedge the size of yours I'd probably have a word with a financial planner.







I am just saying what I would do.