Were to put large amount of money?

Saffasaver

Will be receiving a large amount of money following an insurance pay out. It will be more than the £85k that the banks guarantee is safe in your account.  Was thinking of initially splitting between husband and my savings accounts but then where do you put it. 
Not had an ISA for years, but these seem to be tax free. We will now likely be paying tax on our savings which we didnt before.  Money will likely mainly be to invest in time for our retirement. 

Brie

I'd start by picking a high interest savings account and having it joint between you two as that gives protection up to £170k (£85k each).  Then you can look at your other options re ISAs or whatever.  Maybe chuck a bit into premium bonds just for the fun of it.

PloughmansLunch

Saffasaver said:

Will be receiving a large amount of money following an insurance pay out. It will be more than the £85k that the banks guarantee is safe in your account.  Was thinking of initially splitting between husband and my savings accounts but then where do you put it. 
Not had an ISA for years, but these seem to be tax free. We will now likely be paying tax on our savings which we didnt before.  Money will likely mainly be to invest in time for our retirement. 

How long away is that - next year, 5 years, 10+ years? That would make a massive difference to where I would consider putting it.

Saffasaver

Probably looking at putting it away for at least 5 years and then possibly buy a second house to rent out. I am worried about putting all the money in one account, as a joint account it will be below the £170k mark but above the £85k mark.  Looking into an ISA but you only have a £20k limit per person, although over three years you could have it all in there tax free. 

jimjames

Saffasaver said:

 Money will likely mainly be to invest in time for our retirement. 

If you're looking to use it for retirement is there a reason you're not putting it into your pension/a pension? You'll get the benefit of being boosted by tax relief as well as ringfenced. If you have the option via salary sacrifice you get NI boost too. If you're close to retirement then access isn't an issue either. 
Buying a property is a higher risk than putting into balanced investments in a pension or ISA and also restricts your access to the money - you can't sell 10% of a house for example.

Saffasaver said:

. I am worried about putting all the money in one account, as a joint account it will be below the £170k mark but above the £85k mark.   

As a joint account under £170k it's fully protected so that shouldn't be a worry?

DullGreyGuy

Saffasaver said:

Will be receiving a large amount of money following an insurance pay out. It will be more than the £85k that the banks guarantee is safe in your account.  Was thinking of initially splitting between husband and my savings accounts but then where do you put it. 
Not had an ISA for years, but these seem to be tax free. We will now likely be paying tax on our savings which we didnt before.  Money will likely mainly be to invest in time for our retirement. 

Remember that the £85k cap is temporarily increased to £1m in certain circumstances for 6 months. So depending on what the insurance payout is for, and if its over £1m, then you don't need to have a knee jerk response to receiving the monies.

https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/ 

MEM62

Saffasaver said:

Probably looking at putting it away for at least 5 years and then possibly buy a second house to rent out. I am worried about putting all the money in one account, as a joint account it will be below the £170k mark but above the £85k mark.  Looking into an ISA but you only have a £20k limit per person, although over three years you could have it all in there tax free. 

If the money is to be used over the long term of your retirement then consider putting it into your pension.  Not only is any growth tax free but you get 25% added to any amount you can put in.  Beyond that keep some in a cash ISA, rates are reasonable at the moment, and then use up the rest of your limits with share ISAs.  Between the two of you you will be able to get £40k into ISAs.   

As for the BTL, I am sure that when you look at the work and risks involved along with the fact that, as an investment, it really isn't tax-efficient you will decide that you do not want to be landlords.  

Albermarle

As above, your first instinct to put it all in savings accounts may not turn out to the best in the long run.
Most posters on this forum are not very keen on using property/ Buy to Let etc as a source of retirement income.
The tax regime is less favourable than it was, and it can be a lot of hassle if you are not an experienced landlord and/or a DIY expert.
Generally building up a decent pension pot is a simpler option for most.

Bigwheels1111

I wish everyone would stop looking at the 85k limit for protection.

85k is great, what about your interest ?.

5 year fixed rate Gatehouse bank. Interest paid away each year.

85k + 5.5% a year is £4675.00.

85k SAFE, £4675.00 at risk.

So think about it.

Tax ?.

Will you pay any, who earns more etc.

Keep_pedalling

Saffasaver said:

Probably looking at putting it away for at least 5 years and then possibly buy a second house to rent out. I am worried about putting all the money in one account, as a joint account it will be below the £170k mark but above the £85k mark.  Looking into an ISA but you only have a £20k limit per person, although over three years you could have it all in there tax free. 

Unless you have previous experience of being a landlord I would not be going down that route. If this is going to help your retirement years then I would look at feeding into something like a SIPP which is probably the most tax efficient thing to do. 

njkmr

Landlord these days....? No no no...!