Where to put Inheritance money

Strawberry24

I am due to inherit over £100000 in the next few days. Where is the best place to put it?

I am hoping to put it towards a house so it won't be locked away for too long although would like to save some.

Also, I will lose any help I receive from UC so will have to use it to top up my wages until I can get more hours at work.

Can Anyone advise which accounts would be best at the moment?

wmb194

https://forums.moneysavingexpert.com/discussion/6687498/where-to-put-inheritance-money

https://moneyfactscompare.co.uk/savings-accounts/

SonOfPearl

https://forums.moneysavingexpert.com/discussion/6687498/where-to-put-inheritance-money

If you want to be able to top up your wages regularly then you need an easy access savings account with no restrictions on the number of withdrawals.

I personally use the Tesco Internet Saver https://www.tescobank.com/savings/flexible/internet-saver/ to do this. It has a reasonably good interest rate (currently 4.24%) and allows unlimited withdrawals, and also withdrawals to your bank account are instant which is handy. But be aware that this account has a "bonus" element to the interest rate so the rate will drop significantly after 1 year. But if you intend to use the money to help buy a house soon that won't matter.

Tim_L

Sorry about your loss.

Broadly speaking you look at the interest best buy instant access table with instant access, check t&c are suitable to draw money out when you need it, and open that account. If you haven't got a fully funded ISA then you can split off a bit to get a better return using the tax free status and cash ISA, £20K this year and £12K next (in April), so about a third of it.

There's a potential trap I think, which is that if you are deemed to have bought a house to reduce your savings to below the UC threshold points, you may be denied UC. It's very situation dependent, but comes under "Deprivation of Capital" consideration. See Universal Credit: money, savings and investments - GOV.UK

sheenas

If you intend to buy a house that you live in, then purchasing it will the inheritance would be ok as far as I can see. The issue maybe the amount you earn will not be enough to top up £100K with a mortgage to buy a house.

Albermarle

Savings | MoneySavingExpert

Useful info about savings accounts.

Ms_Chocaholic

Is that £1 million or £100,000. Make sure you move it to accounts with different providers and that they are not linked so you get the full FSCS cover which is £125k per person per firm at the moment though you will be covered via the "Temporary High Balance" cover for up to six months I believe.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82175891#Comment_82175891

Unless you have reason to believe that OP omitted a zero, their £100K falls comfortably within the standard FSCS limit of £120K, so no need for the THB provision.

Ms_Chocaholic

It depends on their current savings was why I mentioned it

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82176010#Comment_82176010

"I will lose any help I receive from UC" suggests negligible, if any, savings.