Savings advice, new territory!

Puddleduck1

Hello.
I am in the fortunate position to have a significant sum of money in savings, having received some inheritance after the sale of my grandparents house ( my gran is still with us I'm please to say) however I don't know what the most sensible course of action is with it.
It is in a Santander 123 account now, which means out of nearly £60k only £20k is earning interest, and soon a monthly fee is to be charged. I have just opened a tsb account so £2k can earn 5% but otherwise I can only distribute a fairly small proportion around different accounts/joint accounts to benefit from the various interest rates/free money on switching.
We have no specific use for it at present, we are farm tenants so cannot use it for home improvements and have no need for any significant purchase. It may well go towards the future of our daughter/family but no set plans.
What would you advise please? I will probably continue to add to these savings in dribs and drabs, do not need immediate access but can't say a portion would be needed within a couple of years. Thank you in advance, this is my first such post!

YorkshireBoy

Puddleduck1 wrote: »

I am in the fortunate position to have a significant sum of money in savings

We have no specific use for it at present

As a couple, you can get £130.5K in accounts paying 3% AER or higher.

If you want to keep your finances separate, you're limited to £50.5K (each).

Just plug your numbers/preferences into this tool...

http://www.bankaccountsavings.co.uk/

Nick_C

Do you have a spouse or partner? You can each open a 123 account, plus a joint account. So if you are not single you could have £60K with Santander. Again, open a TSB account each. There are other high interest current accounts, and you should syphon off £250 a month into the TSB regular saver(s).

lawriejones1

Firstly, really sorry to hear about your loss - always a tough time

Consider your attitude to risk. 3% is a good return, but not life changing (although inflation is negative, so it's still good).

I didn't receive inheritance in cash, but have managed to save a similar sum spread across cash accounts (like the 123), stocks and shares ISA and a few investments in guitars (solid because I used to be a guitar dealer).

Good luck with whatever you do :-)

Eco_Miser

As mentioned, an individual can get up to £50.5k in current accounts paying 3%-5%. Then any extra, followed by the 3% money, can be moved into Regular Savers paying 6%-4% at £2.2k per month.

You could also consider investing some of the money into funds through a Stocks and Shares ISA.

sharpe106

If risk adverse in normal ISA you can put 30,000 away now and another 30,000 in April then open a few bank accounts with the other accounts.