£120,000 where to deposit?

greenglide

Yes I know hence why it would be a deposit £75,000 because after 5 years with interest it will still remain under £85,000.

Although in 5 years time we havent got the slightest clue what value (if any) of banking deposits will be protected.

Remember it is an EU wide scheme - we havent got the slightest clue what will replace it.

xylophone

Do the children have CTF/JISA?



What is your pension position?

What is your spouse's age/ pension/income position?

You are still working and earning?

EachPenny

Keep_pedalling wrote: »

Leaving that sort of sum in cash is frankly nuts

But it is only 'nuts' if the OP is willing to accept certain risks. The OP states they are adverse to the risk of capital loss, and so long as they are aware of the inflation risk then keeping the money in 'cash' is a personal choice, not 'nuts'.

EachPenny

theblacknight wrote: »

They are 13 & 15

Would you be looking at using some of the money to help fund their education - for example 'A' levels, or further/higher education?

Eco_Miser

theblacknight wrote: »

Hi,
I have inherited just over £120,000 I have no idea where to safely deposit it for the best interest rate.
I was thinking of putting £75,000 into a 5 year fixed bond 2.25% FSCS protected then another £25,000 in a shorter term bond.

You are aware that those sums will be absolutely inaccessible during the term?
With equity funds you can have the current value back in your bank within a week or so, if you suddenly need it.

theblacknight wrote: »

The rest I was going to place in the highest instant access account I can find,or maybe open some current accounts and drip feed across them I think that's what some people do.

Don't forget to drip feed into the regular savers as well. 5% AER available on some of your money.

theblacknight wrote: »

I don't want to tie the money up for too long as I am no spring chicken.

If 50s is 'no spring chicken', what's late 60s?

theblacknight wrote: »

I cannot afford to risk the capital or lose any large sums is what I am thinking of doing sensible?

It's a way of having small (probably) guaranteed losses due to inflation instead of wild swings due to volatility plus actual growth.

You say you cannot afford to risk the capital, but what would you have done if you hadn't inherited this money? You could lose the lot and be no worse off, but you won't lose the lot with cautious, sensible investing.

teddysmum

EachPenny wrote: »

Would you be looking at using some of the money to help fund their education - for example 'A' levels, or further/higher education?

Why pay for A levels ? I assume you mean in a further education college , but they are free at school/sixth form college .

EachPenny

teddysmum wrote: »

Why pay for A levels ? I assume you mean in a further education college , but they are free at school/sixth form college .

Maybe it is reflective of the area I live, but a lot of parents who can afford it look into sending their children to private schools for A levels. Not sure it makes any difference myself, but for those with spare money it might seem like a good idea if they have ambitions for top university places.

There's also the post-16/17 living costs... plus driving lessons, cars, car insurance etc

teddysmum

EachPenny wrote: »

Maybe it is reflective of the area I live, but a lot of parents who can afford it look into sending their children to private schools for A levels. Not sure it makes any difference myself, but for those with spare money it might seem like a good idea if they have ambitions for top university places.

There's also the post-16/17 living costs... plus driving lessons, cars, car insurance etc

I used to teach in a private school and don't think all pupils get good value, as anyone not keeping up with the average is expected to pay for tuition and staff discouraged from giving help during breaks, as happens in State schools.


A few years later, I met three ex-pupils ,who were now of A level age ,but had opted to leave the private sector and join the sixth form college. They said they thought the education was better, there was more freedom (no longer treated as children) and the parents were also glad to save money. (Staff in the school were chosen on qualifications (ie degree qualifications to print on the prospectus) rather than teaching ability. Some Phds have no idea about how to teach)

teddysmum

EachPenny wrote: »

Maybe it is reflective of the area I live, but a lot of parents who can afford it look into sending their children to private schools for A levels. Not sure it makes any difference myself, but for those with spare money it might seem like a good idea if they have ambitions for top university places.

There's also the post-16/17 living costs... plus driving lessons, cars, car insurance etc

I used to teach in a private school and don't think all pupils get good value, as anyone not keeping up with the average is expected to pay for tuition and staff discouraged from giving help during breaks, as happens in State schools.


A few years later, I met three ex-pupils ,who were now of A level age ,but had opted to leave the private sector and join the sixth form college. They said they thought the education was better, there was more freedom (no longer treated as children) and the parents were also glad to save money. (Staff in the school were chosen on qualifications (ie degree qualifications to print on the prospectus) rather than teaching ability. Some PhDs have no idea about how to teach)

Mike_Newcomb

Consider :-
a) Stocks and Shares ISA - growth is tax free - best not to touch for a few years though.
b) Premium Bonds - a short term Gamble - lose nothing - though no growth, but largish holdings generally win the big prizes