Lump sum from will

Robert7578

I will be getting £300,000 from a will of a relative, I don't want to invest it or play risky games with it I just want to get maximum interest on it for the time being until I decide what to do with it. 

What are my options ? 

El_Torro

Savings accounts basically. 

Be careful not to have more than £85k with any one banking institution. Any more than that and the excess is not covered by the FSCS. 

If you don't want to faff around too much with opening accounts you can go with NS&I. Not a great interest rate but all the money is covered, not just the first £85k. 

The whole amount is covered for the first 6 months regardless of which bank you go with but I wouldn't rely on that too much. Time goes by and the cover can lapse without you realising. 

xylophone

https://www.moneysavingexpert.com/savings/safe-savings/

You could consider NS&I

https://forums.moneysavingexpert.com/discussion/comment/81697699/#Comment_81697699

Or consider savings accounts from other providers.

https://forums.moneysavingexpert.com/discussion/comment/81697699/#Comment_81697699

 Have you used ISA allowance for the year?

You need to register for Self Assessment if your income from savings and investments is over £10,000.

https://www.moneysavingexpert.com/savings/safe-savings/

Mr.Generous

Don't worry too much about the compensation limit if a bank goes bust, no big UK bank will ever be allowed to go bust - the gov will step in if it has to. The last time any came close they either got encouraged to be in take overs or got gov bale out funding.   I would estimate £300k would bring in a grand a month interest. Two small houses purchased for £120k each would bring £1300 a month at least in rent, plus capital appreciation. 

TheMilkmansDad

Premium Bonds, Max out ISA and high interest savings accounts.

Albermarle

I don't want to invest it or play risky games with it 

As you do not know what you want to do it with it yet, then the above makes sense.

However if you decide that at least part of the money will not be needed for many years ( retirement ?) then it would make sense to invest that part. In fact it would be a 'risky game' not to.

If you read through this forum you will see regular threads/questions  similar to your own, so could be of interest to read the replies. 

Also at some point you may want to consider taking some independent financial advice.

artyboy

Mr.Generous said:

Don't worry too much about the compensation limit if a bank goes bust, no big UK bank will ever be allowed to go bust - the gov will step in if it has to. The last time any came close they either got encouraged to be in take overs or got gov bale out funding.   I would estimate £300k would bring in a grand a month interest. Two small houses purchased for £120k each would bring £1300 a month at least in rent, plus capital appreciation. 

...because right now is the ideal time to dip your toe into the buy to let market?

Bigwheels1111

I have money from selling my house.
I locked it away for 5 years in fixed rate savings. Interest to be paid out annually.
One to keep the tax bill lower and two to give me a nice income every year.
As I was a carer, I only received 4k a year in benefits, I could earn £14,570 from interest on top.
And still not pay any tax on the whole lot.
I kept 30k spare as an emergency fund.
This was put in an easy access account and Easy access IAS.
I then opened a few regular savers, by Saturday it will be 24 of them.
From 5% - 7.5%.

I know banks should not fail.
But I’m cautious and only put a max of 81k in any institution.
85k is protected, what about the interest over that 85k.
It is not covered.
At 5% that would leave £4250 of interest at risk for that year.
Thats my thoughts on the matter.

As a side note, A month after locking my funds always we got a devastating diagnosis.
Which has changed my life forever, 18 months later I was homeless, with no job.
No help either from benefits etc as I have savings, even though I am unable to access them.
Just think ahead and be as prepared as possible.

The interest I get has allowed me to get by. 

Even the safe route has bumps along the way.

jimjames

Mr.Generous said:

 Two small houses purchased for £120k each would bring £1300 a month at least in rent, plus capital appreciation. 

Minus costs and tax so could be even less than the interest. Plus the OP said they don't want to invest or have any risks. Managing tenants that won't leave or pay is quite high up on the risk to me.

SVaz

Well you can get 2 x £20k into cash ISAs between now and next April,  double that if you are married.  That’s £80k taken care of , around £3k of interest that won’t be taxed.  

Are you married?