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AIBU?

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Original poster

AIBU to keep my inheritance in one bank account because of interest rate or am I naive

62 replies

JessicaRabbit23 · 21/04/2026 11:11

More ‘am I being naive’ to put all my inheritance into chase bank because the interest rate is so good. Money will be gone in August I after I buy a new house. I know you are only protected up to 120,000 but do big name banks go bust and surely we would get warnings……

OP posts:
Crikeyomalley · 21/04/2026 13:05

AlcoholicAntibiotic · 21/04/2026 12:58

OP is buying a house in August - stocks and shares would be totally inappropriate for this short a timescale.

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Ah right Missed that bit - shares def not the way forward

HangryBrickShark · 21/04/2026 12:58

AuntChippy · 21/04/2026 12:44

That’s all I meant. Most people can only earn £500 a year in interest before paying tax. HMRC have reduced my tax code to almost nil because of my stupidity in this regard.

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I'm inheriting around 135k - just waiting for probate to be finalised. I was wondering what amount I'd need to live off the interest split into a monthly amount but when I researched this it would have to be nearer a million pounds to make it worthwhile!

If I were you OP I'd consult an IFA. That's what I intend to do. I'm thinking a 5 year bond and a 2 year bond and another ISA and topping up my existing ISA but I really want to pay off my 0% credit card debt first so as to keep it strictly for vet emergencies. I'm very risk adverse so wouldn't be getting much interest but I'd rather my money was safe.

I also intend to buy a second hand 3.5T lorry which my lovely Mum would have very much approved of.

Please also make sure you update your Will and consider looking at Estate Planning to negate carehome fees in later life and leave as much to your dependants as this is what we have chosen to do and it's because of Mum and Dad doing this that would have prevented the LA from swallowing the lot had Mum survived another 5 years.

AlcoholicAntibiotic · 21/04/2026 12:58

Crikeyomalley · 21/04/2026 12:56

You should have some of it an a tax free ISA account and top it up annually ( recently - last tax year put some in Virgin at 4.2%) or in an ISA stocks and shares account -I invested £20k in the Vanguard all world fund (maximum risk spread) last week - and it's up 2% already the fund rose by 15,19 and 13% over the past 3 years.

OP is buying a house in August - stocks and shares would be totally inappropriate for this short a timescale.

Crikeyomalley · 21/04/2026 12:56

You should have some of it an a tax free ISA account and top it up annually ( recently - last tax year put some in Virgin at 4.2%) or in an ISA stocks and shares account -I invested £20k in the Vanguard all world fund (maximum risk spread) last week - and it's up 2% already the fund rose by 15,19 and 13% over the past 3 years.

MaidsRoom · 21/04/2026 12:46

Chase is a brand name of JP Morgan. There is no way JPM is going bust. They are probably a better credit risk than the UK government. I think you’re very safe.

AuntChippy · 21/04/2026 12:44

AuntChippy · 21/04/2026 11:14

Just be aware of the tax implications.

That’s all I meant. Most people can only earn £500 a year in interest before paying tax. HMRC have reduced my tax code to almost nil because of my stupidity in this regard.

Original poster
JessicaRabbit23 · 21/04/2026 11:42

SoftandQuiet · 21/04/2026 11:13

It's an old one but a good one: Don't keep all your eggs in one basket.

I have 50k in premium bonds so there’s always this basket 😂

OP posts:
Musicaltheatremum · 21/04/2026 11:38

AuntChippy · 21/04/2026 11:14

Just be aware of the tax implications.

Apart from paying tax on the interest what tax implications did you mean?

TeenToTwenties · 21/04/2026 11:29

AuntChippy · 21/04/2026 11:14

Just be aware of the tax implications.

?

Puzzledandpissedoff · 21/04/2026 11:28

As with RBS, it's more likely a big bank would be bought or bailed out, @JessicaRabbit23, purely because they couldn't afford a domino effect which risked the failure of the entire system

I doubt there'd be warnings issued though - at least not to the public - and while the FSCS coverage might work for one institution I can't see there being enough to compensate investors if there was an industry wide catastrophe

However I've seen nothing suggesting that's imminent, so while nobody can tell you what to choose I'd personally risk it for the very short term the money will be in there

Finally, since last December, "temporary high balances" of up to £1.4 million are protected for 6 months if you qualify, precisely to cover needs such as your own

https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

Temporary high balances

Learn more about the protection FSCS provides for temporary high balances. Check if your money is protected and find out how FSCS can help you.

https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

AuntChippy · 21/04/2026 11:14

Just be aware of the tax implications.

SoftandQuiet · 21/04/2026 11:13

It's an old one but a good one: Don't keep all your eggs in one basket.

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