What to do with inheritance?

macman

Why 50/50 if all going into savings accounts? Each is protected up to £85K, so split it 85/15, with the bulk in the best payer. There are better options as above though.

steampowered

Don't do anything with your money which is permanent.

Your twenties are a time of personal development and change. You might want to try a few different jobs; go into further education; decide to spend some time travelling or working abroad; move to a different area of the country. You won't really know what the best use of the money is until your life gets a bit more settled.

I would use a portion of the money for yourself - if you've never been travelling overseas for example, now would be a great time to do it (at least once coronavirus restrictions lift). Money invested in your personal development and growing as a person is money well spent.

DON'T  USE THE CASH TO INVEST IN PROPERTY. While some people might suggest that it's a really awful idea for all sorts of reasons - you would be giving up all the benefits associated with being a first time buyer; you would have to pay higher rate stamp duty when buying a house of your own; you would have the headache of legal responsibilities as a landlord and filing a tax return for the income tax you'd have to pay. Not to mention that returns from property are likely to be pretty poor in the short term anyway.

Likewise, using the money as a deposit for a house too soon is a bad idea for lots of people. Owning a house is great in the long term, but it does tie you down to a specific area for the long haul - not really what you want in your twenties when you are better off pursuing work and travel opportunities. Unless you are sure you won't be moving in the next few years don't buy a house until you are fully settled. 

For now, you can keep the cash in savings accounts, while you decide what to do. But over the next few months, educate yourself about investments - learn what a stocks & share ISA is, and what a diversified multi-asset fund is, or what a stock market tracker is.

My suggestion would be to put as much as possible into a stocks & shares ISA through a diversified multi-asset fund, and a chunk of the rest into a regular stocks & shares account in the same way - but you should understand what that involves. You can also look at a Lifetime ISA, to make you money go even further with a government bonus when you do eventually come to buy a house. It is also worth understanding that inflation will erode the value of your £100k gradually if it isn't invested.