Where to invest an inheritance that I don't immediately need

pyrrhus80

Albermarle said:

I'm a low wage earner with no other savings or investments 

No workplace pension ( which contains investments)?

no                

pyrrhus80

Brie said:

I went for a Santander account that is giving me 5.2% with instant access despite me not expecting to need any of it for some time.  I splintered off a relatively tiddly amount (£2k) to put in premium bonds which I expect to leave much longer just for the fun of it.  

Yeah, I've been considering premium bonds. From what I've read, it's not the best idea but I like the thought that maybe - just maybe - I'll get lucky.
I doubt I'll do it though.

pyrrhus80

Linton said:

At that point investing in shares starts to become worthwhile.

The good thing about shares is that over the long term they should beat inflation.  The down side is that over the short term the price can fall.  So if your time period is small you run the risk of ending up with less than you started.

I really would like to consider shares but I don't know that I have the brains or the stress tolerance for it.

ColdIron

pyrrhus80 said:

For example, Starling (who I'm currently with) claim to offer a "Fixed Saver" account where you can "lock away savings for a year and earn 5.53% AER (fixed) interest on balances from £2,000 up to £1,000,000."

It's not a claim, they do offer this account. It's not a table topping rate but it's OK, certainly very easy to open as an existing customer. It wouldn't be a bad move

What happens after the year is up?

You get your money back plus interest and get to decide what to do with it again

badmemory

The obvious questions.  Do you own your own property.  Are you near retirement age.  How good is your pension & is your state pension funded up to date.  If you don't own your own property could this amount be intended for your deposit.  As you can see these questions can go on & on.  But can all affect your decision making.  Unless you are likely to get at least £1k in savings interest then just go for the highest interest rate saving account.

Albermarle

pyrrhus80 said:

Albermarle said:

I'm a low wage earner with no other savings or investments 

No workplace pension ( which contains investments)?

no                

Why are you self employed ? Or did you opt out of your workplace pension ?

For example, Starling (who I'm currently with) claim to offer a "Fixed Saver" account where you can "lock away savings for a year and earn 5.53% AER (fixed) interest on balances from £2,000 up to £1,000,000."

What happens after the year is up?

A few weeks before the year is up, Starling will contact you with various options. Such as;
Transfer it all back to your current account. ( if you do this you can then save it with another provider if you wish)
A new one year fixed term with them ( + maybe two, three year options etc)
Move it to their easy access account.

You tick the option you want and when the one year finishes that is what will happen. Have a read of this,
Best savings accounts: 5.2% easy access or 6% fixed rates (moneysavingexpert.com)