What to do with around £140k

IHateDida

I never thought I would have such a predicament but after years of caring for my elderly father I was left a house in his will. The house sale is about to complete in the next 2 weeks and I am really panicking about what to do with the money from the sale as I know I can't just leave it in my current account. I am paying as much as I can off our mortgage without penalty (our mortgage is on a 2 year fixed) but I will be left with around £140k.

What on earth do I do with it????

Ideally we'd like to use it towards buying a bigger house but thats not going to happen at least until next summer. What do I do with it in the meantime - my Dad worked his whole life for his house so I would like to keep it safe and without risk.

Advice really appreciated. Thank you.

xylophone

You could deposit the whole lot safely in NS&I Income Bonds until you are ready to proceed with the purchase of your new home next summer.

https://www.nsandi.com/income-bonds

IHateDida

Thank you - are the rates ok - do I receive protection of the whole £140k?

I am too clueless to inherit this kind of money!!!!!!!!!!!

kidmugsy

IHateDida wrote: »

Thank you - are the rates ok - do I receive protection of the whole £140k?

The rates are decent and the whole sum is protected.

Waiting to use it will work out well - you'll have a chance to get over the grief of losing your father, and the feeling of intimidation by having a tidy sum of capital at your disposal.

Thrugelmir

What's your pension provision like? Does your employer offer matched contributions?

Buy some premium bonds. Returns are speculative. Though you can access the money quickly if need be, i.e. house purchase.

Deposit some of the money into longer term fixed accounts. Some good rates on 15 month - 2 year deposits. That way you've a rolling emergency fund.

Need a savings pot for a future car replacement?

Having been in a similar position myself. Take your time. Drip feed the money far and wide.

xylophone

are the rates ok

Details in the link - the rate (1.15) is not the highest available but the full sum is protected for as long as you choose to leave it there.

You could put up to £50,000 in Premium Bonds for a flutter if you wished.

Other savings rates here

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

IHateDida

I have a teacher pension so relatively ok (although I am part time now) - we also own a rental property (purely accidental as it was so messy we couldn't move out of it in a day so decided to rent it out instead so we could move over a number of weeks LOL!) so hoping our retirements provisions are relatively ok. But we do live in quite a small house now....so would like to move next year or year after....

Car replacement - probably not for about 5 years.

I know I am extremely fortunate to be in this position but it scares me (thank god my father wasn't a millionnaire!).

Thank you.

Thrugelmir

IHateDida wrote: »

Car replacement - probably not for about 5 years.

Putting a lump sum away means that you buy it for cash at the time. Thereby getting a better rate of interest on your money.

I have a teacher pension so relatively ok (although I am part time no

Buy additional pension through the scheme possibly.

Alternatively start a seperate pension scheme and save to retire at an earlier age.

MaxiRobriguez

Bank protection is up to £85k so the first thing you'll want to do is ensure your £140k is split between at least two bank accounts (not going above £85k in both) whilst you decide what you want to do.

badger09

MaxiRobriguez wrote: »

Bank protection is up to £85k so the first thing you'll want to do is ensure your £140k is split between at least two bank accounts (not going above £85k in both) whilst you decide what you want to do.

Except for situations like house sale or inheritance, when FSCS protection covers 'Temporary High Balance' up to £1million for 6 months

eskbanker

badger09 wrote: »

MaxiRobriguez wrote: »

Bank protection is up to £85k so the first thing you'll want to do is ensure your £140k is split between at least two bank accounts (not going above £85k in both) whilst you decide what you want to do.

Except for situations like house sale or inheritance, when FSCS protection covers 'Temporary High Balance' up to £1million for 6 months

And of course that £85K limit doesn't apply to NS&I, even outside the six-month THB window, so if OP sticks to that recommendation then the £85K limit isn't relevant....