Looking for savings advice

fairycake

So we are in the fortunate position of having inherited some money approx 100k. We are married and retired in our 60s.
i have no idea of the best thing to do . ISA , premium bonds, or usual savings account.
any advice would be welcome . Many thanks 

MeteredOut

Quick wins:

Do you have any credit cards that need paying off, or loans, or debts, or mortgage? Typically pay these first (unless the mortgage rate is lower than interest you can earn on cash).

If you have a pension you can contribute too, stick £2880 in each in each tax year, and the government will top that up to £3600 which you can then draw down. Free money.

If you haven't maxxed out your ISAs this year, put £20K in one for each of you. You'll need to decide on either a cash ISA, which will pay interest that, at present, just about keeps up with inflation, or a Stocks & Shares ISA that invests in the stock market. Most people here would recommend some sort of investment that contains a mix of equities/bonds between 60/40 and 100/0 depending on your appetite to risk, and how much you're willing to ignore the volatility of the stock market.

With a S&S ISA, assume you'll need to keep it invested for at least 5 years. For the equity aspect, the safest route is a diversified fund that spreads risk across geographies and sectors, or you can go for a higher risk/reward fund if you think, for example, that one country or sector is going to perform well.

If you don't already have a rainy day fund, keep some aside for that.  This could be cash in a savings account or even a flexible cash ISA.

Stubod

..give us a clue...do you have any debts, mortgage, pensions, current savings, house ownership, short and long term financial plans, current income v expenditure, risk profile, do you akready have a "safety pot", any upcoming big expenses planned.....do you need any of this money now??

If it is surplus to your current requirments do you want to keep it for a rainy day, or to create and income??? savings or investing. Do you need a new car...or a new boiler etc??

..certainly ISA's (S&S or savings depending on your risk profile) if you have not already filled up your allowances, also Premium Bonds are worth a punt if you already have other savings...your call really...

BooJewels

It's a bit too vague a question to give you a meaningful answer.  I suppose a quick and dirty answer would be - some of each of the above.

It depends on what other income you have (might determine tax and your wish to minimise it by putting some in ISAs - do you get SP and/or private pensions) - do you need an income from the funds, when might you need to access it, do you already have an emergency fund set aside etc. etc.

My own approach in a similar situation is to mix and match a bit - some in fixes to get a slightly better rate of interest and give me some stability for the short term future (2-3 years) - some of that is in ISAs, some not.  I have some in EA accounts that I can get at as required and I have my interest paid monthly as I use it as income.  (In reality, I take funds from whichever account is paying the lowest rate and leave interest in better paying ones to compound).

We all have different circumstances and very different solutions might be ideal for each of us.  I'm heading towards SP age soon, so my last couple of years have been determined by that forthcoming change in my situation.

Vitor

One way to think about it is in layers rather than products.

Immediate access money for peace of mind and unexpected costs.

Medium-term money where capital preservation matters more than chasing returns.

Longer-term money that you genuinely don’t expect to touch for 5+ years.

ISAs are mainly about tax control, especially in retirement when interest can push you into tax without you realising. Premium Bonds are fine as a low-risk diversifier, but they’re not a substitute for interest-bearing savings.

If you’re cautious, you don’t need to go all-in on investing, but equally it’s reasonable for some portion to be in a low-cost, diversified fund if it’s genuinely long-term money.

There’s no single “best” answer, but there is a sensible structure.

fairycake

Ok we have state pensions and private pensions
 No Mortgage or debts. Home owners.
we have about 15 k in other savings 

Beddie

Just one suggestion:

£20k each into ISAs, this tax year and next, depending on how much you've already used of your allowance, if any. Easy access if you need it, or fixed rates if you're happy to lock it away for better rates.
£20k of premium bonds, if you like the idea.
The rest in easy access savings, ready to move more into ISAs next April.

That will do for now. Do spend some though, have a nice holiday or whatever. Longer term, if you'd like more income (or growth) you could maybe invest in a stocks and shares ISA, but that will need further thought if you've not invested before.