£30,000 coming in September - options

Dunney77

I am to receive £30,000 in September as inheritance following the death of my father last year (we kept it invested in Premium Bonds for a year as per his wishes).

I have £5000 already in savings and my current situation is:

- £30,000 salary
- Single
- 24 year old graduate living in London

As this money was never meant to be mine (I thought my father would live a lot longer), I want to put this away for quite a few years so it can appreciate.

Cash is a poor option and with interest rates due to rise later in the year, I think I have missed the boat for cheap mortgages (property in London is ridiculous).

What would peoples' opinions be?

xylophone

Stocks and shares ISA for £15240?

http://monevator.com/compare-uk-cheapest-online-brokers/

http://monevator.com/low-cost-index-trackers/

Balance in high interest current accounts - TSB Plus £2000, Nationwide Flexdirect £2500, Lloyds Club £5000, balance in Santander 123? Move interest accruing to 123.

You will need DDs where required and to cycle round the monthly credit - read T&Cs and threads on forum.

Move as much as you wish into ISA in next tax year?

kidmugsy

I might keep the £30k in cash (following xylophone's suggestions and perhaps topping up with Premium Bonds of your own) and then expect to fill an S&S ISA late in this tax year. Why the delay? (i) I expect Trouble, and it could come as early as this Autumn, (ii) Just in case the Chancellor's Autumn Statement or Spring Budget should alter the relative attractions of investing in ISAs and pensions.



Then next tax year you can reconsider when you have a new ISA allowance available.

colsten

kidmugsy wrote: »

(i) I expect Trouble

what sort of Trouble?