What to do with inherited money??

fleenio

Hi there,

I am due to get a cheque for ~£80k. I am not sure what to do with this money, although I do know that (some) of this money could possibly be used as part of a mortgage payment (if I find the right house and depending on the market). I have a graduate account and also an mini ISA which I have already used this years allowance. I have also thought about going to speak to an advisor at my bank. Could anyone offer me some advice? Please feel free to ask me any question if you need some more information. TIA

jem16

fleenio wrote: »

Hi there,I have also thought about going to speak to an advisor at my bank. Could anyone offer me some advice?

Don't go to a bank for financial advice. See an Independent Financial Adviser if you plan to invest any of the money.

Investments should be for a minimum of 5 - 10 years. Savings if less than 5 years. You need to decide which.

Primrose

The first piece of advice I can offer is "Do not go and talk to your bank. They will only be able to sell you products from their own stable, and you can bet your bottom dollar that even if they are vaguely appropriate, they will not be the most competitive deals on the market. Try and find yourself a good Independent Financial Advisor, and if you don't know how to find one, ask around - maybe your company has some financial contacts or the parents of your friends might be able to recommend somebody. You've already done the sensible thing in using up this year's cash ISA allowance. Until your longer term objectives are clear, maybe the best thing to do is open up a couple of high interest savings accounts, or possibly a six months savings bond. However tempted you are to have a splurge, you are unlikely to have another lucky windfall, so take your time and save/invest it wisely until you are ready to buy a property.

fleenio

I could probaly talk to my works IFA as I am also considering the pension scheme. I think I may open up a savings account, are there different types of high interest saving account?

[Deleted User]

fleenio wrote: »

I could probaly talk to my works IFA as I am also considering the pension scheme. I think I may open up a savings account, are there different types of high interest saving account?

You've really got 3 choices for savings accounts:

Fixed Rate Bonds over 6months, 1, 2 or 3 years e.g. Icesave 6.60% AER, 2 Year Bond or for best buys:

http://www.moneyfacts.co.uk/savings/bestbuys/long-term-fixed-rate-bonds.aspx
http://www.moneyfacts.co.uk/savings/bestbuys/short-term-fixed-rate-bonds.aspx

Standard easy access Internet Accounts e.g. Kaupthing Edge, 6.50% AER or best buys:

http://www.moneyfacts.co.uk/savings/bestbuys/internet-savings-accounts.aspx

Or finally Regular Savings accounts e.g. Abbey Fixed Monthly Saver 7.25% AER (according to their site, moneyfacts say 7.23%?!) or for best buys:

http://www.moneyfacts.co.uk/savings/bestbuys/regular-savings-accounts.aspx

To work out where may be best for your money have a play around with the savings calculator:

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#savingscalc

fleenio

OK I have decided to open a high intrest savings account and leave the money in there, untill I speak with my works FA. Thanks everyone