Me and my wife have come into some money

bigmark69

My mother in law has given me and my wife some money and we want to put it into a joint account but not sure what one is best. We have £90,000 to put away but we only want one account we don’t want to spread it about in numerous accounts. So what accounts would be best and hopefully get some good interest of the money as well. 

Cheers Mark

TheMilkmansDad

take a look here > https://moneyfacts.co.uk/savings-accounts/

your only protected up to £80k per financial institution so you may want to think about splitting it.

Savings rates will be eaten by inflation.

Depending on your long term plans for this money you may want to consider investing in ISA's, pensions or perhaps reducing mortgage if applicable.

Rheumatoid

TheMilkmansDad said:

take a look here > https://moneyfacts.co.uk/savings-accounts/

your only protected up to £80k per financial institution so you may want to think about splitting it.

Savings rates will be eaten by inflation.

Depending on your long term plans for this money you may want to consider investing in ISA's, pensions or perhaps reducing mortgage if applicable.

£85k protected

Grumpelstiltskin

I hope your mother in law hasn't given you the money so it won't be taken into account if she has future care needs, read up on Deprivation of Assets.

Pompeydave1967

bigmark69 said:

My mother in law has given me and my wife some money and we want to put it into a joint account but not sure what one is best. We have £90,000 to put away but we only want one account we don’t want to spread it about in numerous accounts. So what accounts would be best and hopefully get some good interest of the money as well. 

Cheers Mark

Do you need to access the ££ over the next year or two ?if not then a fixed for a year good bet at the moment .Or maybe 10-20% in an easy access if some funds needed  , rest in a fixed .

The_Fat_Controller

You may have Inheritance Tax issues to consider if she dies within 7 years.

Stubod

£45k each in Premium bonds?..or just google best savings accounts...

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

ColdIron

The_Fat_Controller said:

You may have Inheritance Tax issues to consider if she dies within 7 years.

The OP won't have any IHT issues. The OP's MIL's estate may have IHT issues

Bigwheels1111

Best option is 2 accounts, to half the tax burdon. Plus protect the savings limit of 85K.

Then its simple, how long before you need the money, plus now is not the best time to fix, well thats what Im thinking.

The Bank of England sit 3 more time this year, with inflation so high they should raise interest rate on each sitting.

Im holding off until Jan or Feb next year to fix.

Using Al Ryan @ 1.9% easy access, Shawbrook @ 1.84% paid monthly, Zopa @ 1.95% 31 days notice.

I would think a 1 year fixed @ 4% will be here by December.

But its all pie in the sky until then.

No one knows for sure.

coyrls

Bigwheels1111 said:

Best option is 2 accounts, to half the tax burdon. Plus protect the savings limit of 85K.

No, the protection is £170K for joint accounts: https://www.fca.org.uk/consumers/deposit-savings-protection and tax is half per person.

Bigwheels1111

coyrls said:

Bigwheels1111 said:

Best option is 2 accounts, to half the tax burdon. Plus protect the savings limit of 85K.

No, the protection is £170K for joint accounts: https://www.fca.org.uk/consumers/deposit-savings-protection and tax is half per person.

I know thats why I said for Tax reasons. In one account for 1 year fixed at 3.2% you should get £2880 interest.

Plus a large tax bill.

Split between 2 people less tax,

Do they both earn more or less than £18.5k

If one earns say £14K that leaves £4.5k that could be used as tax free interest.

If both earn more from memory thay can get £1000 tax free so 20% tax on £880.00, £176 tax. Or £83 each if in 2 accounts.

Unless you earn over 40k, then only £500 interest is tax free.