Best savings account to put inheritance in?

Kez2511 wrote: »

I am in no rush to spend the money.

Just been looking at this account with nationwide. I might lock it away for five years. What do you think. Then deposit £250 a month if I can. The account has 2.00%

I wouldn't lock it away for that long because rates are pretty low right now, and there is a fair chance that they will rise within the next five years, but you won't be able to benefit because your money will be locked away. I'd suggest a one year fix at present, and then do the same again in a year's time. You can review it every 12 months.

2% is a dreadful rate for a five year fix. You can get 1.83% on a one year fix with Secure Trust Bank. https://www.moneysavingexpert.com/savings/savings-accounts-best-interest#fixedsavings

MalMonroe wrote: »

I am saving with Nationwide and so far I'm happy. They recommend putting cash into ISAs. There are different kinds of ISAs and if you can leave your money for longer, you get higher interest rates. Unfortunately, interest rates everywhere are a bit rubbish right now, but see this link, from our own Martin Lewis money saving expert site : https://www.moneysavingexpert.com/savings/which-saving-account

There is no point putting cash into an ISA unless you are going to earn more interest than your personal savings allowance, which is £1,000 for a basic rate tax payer (i.e. you pay no tax on interest earned, up to £1,000 each year). As ISA rates are less good than non-ISA rates there is no advantage to putting the money into an ISA.