What should I do with inheritance?

jason_pinches

I've recently inherited £12,000. £2,500 has paid off student overdrafts and debts. I plan to spend a an amount on professional equipment in the field I work and a holiday. This should leave me with £5000 to save.

I've read all of Martin's guide which are great, but a bit overwhelming as there are so many choices.

As far as I can tell, it would make sense to put £2000 in a Help to Buy ISA (Not that I have my heart sent on home-ownership) and make monthly saving out of my salary into it. And the rest in an account such as Nationwide FlexDirect to take advantage of the 5% AER for the first year.

I'd really appreciate if anyone has any better suggestions!

Cheers

PeacefulWaters

Drink, women and fast cars.

Not necessarily in that order.

Zola.

Put the inheritance for the best use possible.

What would the person who left the money honestly want you to do with it? Something that will help you towards your long term I suspect.

Eco_Miser

£1,200 into HTB ISA, followed by £200 a month, either from salary or from the remnants of your inheritance. This is the maximum allowed.
£2,500 into Nationwide FlexDirect, then £500 a month into Nationwide Flexclusive Regular Saver, both at 5%.
The rest of your money into (two) Tesco Current Accounts paying 3%. This includes what you'll be spending on equipment and holiday. Move money out monthly to a) satisfy the required £1000 a month into the FlexDirect, and b) from there feed the RS and HTB. The other £300 can be returned to Tesco, or spent as part of your normal expenses.

DiggerUK

Five thousand is a nice emergency fund. Easy access storage would be best. Premium Bonds, Cash ISA, or 'ring a ring a' cheque account..._

Froggitt

PeacefulWaters wrote: »

Drink, women and fast cars.

.......and squandor the rest :beer:

[Deleted User]

Eco_Miser wrote: »

£1,200 into HTB ISA, followed by £200 a month, either from salary or from the remnants of your inheritance. This is the maximum allowed.
£2,500 into Nationwide FlexDirect, then £500 a month into Nationwide Flexclusive Regular Saver, both at 5%.
The rest of your money into (two) Tesco Current Accounts paying 3%. This includes what you'll be spending on equipment and holiday. Move money out monthly to a) satisfy the required £1000 a month into the FlexDirect, and b) from there feed the RS and HTB. The other £300 can be returned to Tesco, or spent as part of your normal expenses.

Right I've opened a flexdirect, flexclusive and 1 Tesco current account(I have about £35k to spread around. I haven't opened the 2nd Tesco account you mentioned(how and which account?) Also I can't do the HTB as I already own a flat.

Can you just say in Layman terms what else I need to do please(maybe a few calculations please:)

Any help is much appreciated.

Thanks

Chris

badger09

Deleted_User wrote: »

Right I've opened a flexdirect, flexclusive and 1 Tesco current account(I have about £35k to spread around. I haven't opened the 2nd Tesco account you mentioned(how and which account?) Also I can't do the HTB as I already own a flat.

Can you just say in Layman terms what else I need to do please(maybe a few calculations please:)

Any help is much appreciated.

Thanks

Chris

By Flexclusive, I assume you mean the Flexclusive Regular Saver?

a 2nd Tesco current account - you can have 2:)

If there are 2 of you you can have twice as many accounts;)

Have you read these?

http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

[Deleted User]

badger09 wrote: »

By Flexclusive, I assume you mean the Flexclusive Regular Saver?

a 2nd Tesco current account - you can have 2:)

If there are 2 of you you can have twice as many accounts;)

Have you read these?

http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Yes It is the regular saver.
You mean I can open 2 Tesco current accounts in only my name? (I'm single)
I'll take a look at the other links thanks.

badger09

Deleted_User wrote: »

Yes It is the regular saver.
You mean I can open 2 Tesco current accounts in only my name? (I'm single)
I'll take a look at the other links thanks.

Yes

Also, you need to check the T&Cs of all the accounts you are thinking about opening. The guides are useful but no substitute for reading the T&Cs which can change.

Off the top of my head, start with:p

Nationwide FlexDirect & Flexclusive Regular Saver
Tesco x 2
BoS Vantage x 3
TSB Classic Plus

Also, look at Regular Savers with First Direct, HSBC, M&S etc. You'll need current accounts with each though, so maybe start with the ones you can fill immediately

Eco_Miser

As Badger has said, two identical Tesco current accounts, three identical BOS current accounts, and one of each other current and regular saver account listed here.

How many accounts you actually open depends on how quickly you spend on equipment and holiday, and how much surplus income you have coming in, but aim to get the highest income.

For a guide to the funding movements see http://bankaccountsavings.co.uk/