Savings / investment re cash inheritance

Birchtree2026

Hi all 

I have inherited a cash sum of around 100K following the death of my father. I am wondering what best to do with this in terms of savings / investments. Seems like it would be prudent to put 20K in a Cash ISA - which ones might be best? And other possibilities which you may have found beneficial? My mum was a big fan of premium bonds but I’m not sure…

For those who may have met with a financial advisor to discuss options as above has this been helpful? 

Thank you 

eskbanker

The UK Personal Finance Flowchart - UKPersonalFinance Wiki may be a good place to start, and/or spending some time reading through previous threads on this topic.

El_Torro

A combination of putting money in your mortgage, Stocks & Shares ISA and your pension are likely to be the right choice. What amount you put where will depend on your personal situation, which we know nothing about. 

The best way to look at Premium Bonds is as a place to put some (or all) of your cash. There is a place for cash and a place for investments in any portfoilio. Many people mistakenly think of Premium Bonds as investments. 

eskbanker

El_Torro said:

The best way to look at Premium Bonds is as a place to put some (or all) of your cash. There is a place for cash and a place for investments in any portfoilio. Many people mistakenly think of Premium Bonds as investments. 

And likewise many views of PBs seem unduly influenced by the fact that returns are tax-free - while this is undeniably true, the returns are (a) variable rather than guaranteed and (b) not particularly impressive at current rates, where the 'average luck' return from a maximum £50K holding is about 3.1%, which is beaten by leading taxable accounts even after basic rate tax on all interest.

MEM62

Birchtree2026 said:

Hi all 

I have inherited a cash sum of around 100K following the death of my father. I am wondering what best to do with this in terms of savings / investments. Seems like it would be prudent to put 20K in a Cash ISA - which ones might be best? And other possibilities which you may have found beneficial? My mum was a big fan of premium bonds but I’m not sure…

For those who may have met with a financial advisor to discuss options as above has this been helpful? 

Thank you 

Without knowing your current situation and your goals, aspirations and plans for the money it is difficult to offer any meaningful opinion.   

Albermarle

If you read through the forum you will see that this topic crops up regularly. Reading some of the answers may help you.
One recurring question you will see - is what are your longer term plans for the money. Until you have an idea about this then it is difficult to choose what do it with today.

jimjames

Birchtree2026 said:

Hi all 

I have inherited a cash sum of around 100K following the death of my father. I am wondering what best to do with this in terms of savings / investments. Seems like it would be prudent to put 20K in a Cash ISA - which ones might be best? 

Subject to all the above posts about deciding on priorities, also be aware that ISA limit is per year so you can get £20k in now and £20k after April. If you have a partner that can be doubled so you'd get £80k protected from tax in cash or S&S.