Advice on what best to do with my inheritance: savings

krazyk

So would it be best to put the full amount (~£50k) into one savings account? Or split it in one way?

Eco_Miser

krazyk wrote: »

I'm happy to lock the money away but would also like to add money monthly too. Most accounts you lock your money away don't allow transactions in either direction so this doesn't seem to be an open option.

Use different accounts for different purposes. So you might put the bulk of your money in a fixed term, fixed rate account (but there are probably better, though more complex options), and save monthly into Regular Saver accounts (which pay up to 6% AER - the best rate going for cash), and keep your day-to-day cash plus emergency reserve in high interest current accounts.

http://www.bankaccountsavings.co.uk/ has suggestions about which accounts, see also the article links at the top of the page.

krazyk

Eco Miser,

Super, thanks for the info. That sounds like a good idea.

krazyk

Eco Miser,

I tried that website. Very useful but wow it suggests opening 8 accounts and setting up 6 regular transfers for £50-60k.

BTW, you mentioned a Regular Saver account with a rate of %6. I can't seem to find that. Would you mind pointing me in the right direction?

Khrisjun

Hi Krazyk,

I think on the regular savers you need to have a current account with the same provider to open, e.g. first direct if you open a current account you can then open there 6% regular saver and feed money in

You can get 4% on Halifax's new Help to buy ISA but that limits you to the £1000 deposit and regular £200.

Tesco allows 2 current accounts with 3% on upto £3k which may be a good extension to santanders 3% on 20k,

Eco_Miser

krazyk wrote: »

Eco Miser,

I tried that website. Very useful but wow it suggests opening 8 accounts and setting up 6 regular transfers for £50-60k.

Yes, that's over the most a single person can get in these promotional higher interest current accounts, so you have to use them all, and push as much as you can into regular savers as well. BTW, that site missed the Nationwide Flex Direct £2500 @ 5% offering - which will let you have their brand-new regular saver as well.

krazyk wrote: »

BTW, you mentioned a Regular Saver account with a rate of %6. I can't seem to find that. Would you mind pointing me in the right direction?

Post 5 on this thread Note that there's a new £500pm 5% Regular Saver from Nationwide not on that list yet.

krazyk

Eco Miser,

Thanks, yes I've seen that Nationwide one. My current account is with them so I've asked about about their regular savings and regular ISA accounts. I'd love to upgrade my FlexBasic account to the FlexAccount but my credit score wasn't higher enough when they checked early in the year. Wonder if having the inheritance would improve my credit score, it is very limiting.

So my thoughts are trying to get the Santander 123 account at the very least then plugging money into any improved Nationwide accounts they'll let me have. Else it's the 8 accounts, 6 DDs route. :-) It's a shame only one company has a good rate for anything over £2-5k. :-(

Two debts paid off last month, one more to go. :-) Two defaults still on my record, to come off in the next couple of years apparently.

Eco_Miser

If you can't get the FlexAccount, you probably won't get any of the 8 interest paying accounts either.
Actually having £50k may help.

krazyk

I'll try a credit score again once the inheritance has come in. Then take it from there.

Thanks for all your help. :-)