Help with inheritance

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Hi all,


I have inherited some money around £10k and I'm really not sure where to put it. I only have a loan which is manageable so I don't want to pay that off. I have also ear marked this money for something but I'm not entirely sure when I will require it. So I don't want to lock it away for years either.


Can anyone offer any advice on this please?


Thanks

Comments

  • kingrulzuk
    kingrulzuk Posts: 1,330 Forumite
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    Liz77 wrote: »
    Hi all,


    I have inherited some money around £10k and I'm really not sure where to put it. I only have a loan which is manageable so I don't want to pay that off. I have also ear marked this money for something but I'm not entirely sure when I will require it. So I don't want to lock it away for years either.


    Can anyone offer any advice on this please?


    Thanks





    Here you are: http://www.moneysavingexpert.com/banking/compare-best-bank-accounts
    What happens if you push this button?
  • badger09
    badger09 Posts: 11,247 Forumite
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    Liz77 wrote: »
    Hi all,


    I have inherited some money around £10k and I'm really not sure where to put it. I only have a loan which is manageable so I don't want to pay that off. I have also ear marked this money for something but I'm not entirely sure when I will require it. So I don't want to lock it away for years either.


    Can anyone offer any advice on this please?


    Thanks


    Your loan may be manageable, but if the interest you are paying on it is higher than the interest you could get on your £10k, then it would make (financial) sense to pay off the loan.

    You could then save the 'repayments' in one of the high interest current accounts or regular savers.
  • Liz77
    Liz77 Posts: 13 Forumite
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    Thanks. The problem is if I pay off my loan and I need the money in 6 months or so I then won't have it as it will take a few years to get back up to that amount.
  • xylophone
    xylophone Posts: 44,606 Forumite
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    You could consider opening a Nationwide Flexdirect account, a TSB Plus account, and a couple of Tesco current accounts.

    You would then deposit £2500 in NW, £2000 in TSB (go paperless), and £2750 in each of the Tesco accounts.

    You would set up a standing order for the same day each month to send £1000 from TSB to NW and from NW to TSB.

    You would move the monthly interest accruing on TSB and NW into Tesco.

    After a year, the 5% on NW ends so you would reconsider your options then.
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