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Original poster

Where in earth can I put this £5000?

70 replies

nonproblem · 01/01/2021 23:57

I have recently inherited £30k and am working out what to do with it all. I have never had savings of any note before and, though quite comfortable with a decent salary, following a divorce a few years ago I've really lived month to month and I want this to be a turning point.

I've put the maximum £20k allowed in an ISA for 5 years. I would ideally like to put a further £5-6k into a savings account that I can access if needed but will otherwise leave alone. The rest I plan to keep in my current account/spend on things I have been needing for the last few years (replacement window and other such exciting things...)

The problem is I can't work out where to put the £5-6k. I've seen savings accounts that seem to limit your initial deposit and are aimed at putting relatively small amounts away monthly. I've got one of those already and want to continue paying into that £300-£500 from my salary as I was doing before the inheritance and I don't want that to stop. I have also thought about opening another current account as they don't limit deposits but you need to have bigger monthly amounts going in and direct debits going out and I think I'd have to do a lot of moving money around each month and would end up not doing it or getting confused.

Any ideas? I'm so worried that if leave it in my current account it''ll end up getting frittered over time and it also makes it hard to track my monthly spending as it's keeping the balance artificially high. Have I missed something obvious?

OP posts:
Shamoo · 02/01/2021 00:00

I think all of the main banks have separate savings accounts, but the rate of interest is appalling. If you don’t care about the rate of interest and you just want a savings account to keep it separate, most banks do them - i bank with Santander and HSBC and you can get either with an online application on their websites.

Or is there something more specific you want?

What about putting them in premium bonds so they are still separate and you have the chance to win something? I’ve recently put 10k in premium bonds as interest rates are so rubbish!

Soutiner · 02/01/2021 00:02

Open a trading account here

www.ii.co.uk/

bubblebubblebubbletrouble · 02/01/2021 00:05

Premium bonds? No interest though , unless you win of course.

Interested in this thread?

Then you might like threads about these subjects:

General money Savings & investments
Original poster
nonproblem · 02/01/2021 00:09

Ah, Premium Bonds - I'm not even sure what they are exactly, but will have a Google.

I have a savings account linked to my bank account, but again, it only allows me to deposit about £250 per month.

Don't think I'm brave enough for trading...

OP posts:
Tartyflette · 02/01/2021 00:11

You could put it in National Savings Premium Bonds while you decide what you want to do with the money in the longer term.
National Savings also has a 'Direct Saver' account that you can pay the whole lot into. The interest rate is crap, of course, but that's the case everywhere. But it's instant access, and easy to manage online.
www.nsandi.com/products/direct-saver

ErrolTheDragon · 02/01/2021 00:11

[quote Soutiner]Open a trading account here

www.ii.co.uk/[/quote]
That's probably not a good idea for short term investments that you may want to draw on.

Premium bonds are a safer option and if you've got a reasonable number you're statistically likely to get £50 here and there with no risk and easy to withdraw.

Murinae · 02/01/2021 00:13

I say premium bonds too

orangeicecream · 02/01/2021 00:14

Buy shares on the moneybox app.... I've ha dit for about 18 months and really like being able to check the ups and downs on my phone.

caringcarer · 02/01/2021 00:15

Do at least 1 ISA stocks and shares ISA. You will get far more interest.

WitchesBritchesPumpkinPants · 02/01/2021 00:15

Talk to your bank. I doubt that's the only savings account they have. As it's under £10k it really shouldn't be an issue.

It's nice you have that bit of security now, but I'm sorry it was through an inheritance.

NekoShiro · 02/01/2021 00:24

Pay it off your mortgage? Assuming you have some left to pay

AwkwardPaws27 · 02/01/2021 00:31

Do you have a mortgage? I'd probably pay a chunk of that off and reduce the term.

kirktonhouse · 02/01/2021 00:35

Another vote for premium bonds - no risk, easily accessible and chances are you'll win an occasional £25. I have £500 in an old low risk ISA with a bank earning 2p/month. The money in premium bonds has earned 50p/month in 2020 (for each £500 invested).

DianaT1969 · 02/01/2021 00:40

What type of pension do you have? If your employer matches your contribution you could pay more in from your salary and live off the £5-6k. Might there be other benefits to paying more into you pension, such as self-sacrifice to bring you below higher tax rate?

wheretoyougonow · 02/01/2021 00:44

My savings account. Sorry, you did ask. I'll get my coat... Grin

Kpo58 · 02/01/2021 00:51

If you live somewhere cheap, but are renting, would it be worth using the 30k as a deposit, especially if the mortgage is lower than the rent that you currently pay?

torthecatlady · 02/01/2021 00:52

I vote for premium bonds Smile

ErrolTheDragon · 02/01/2021 00:59

Pensions are a good idea but only for money you don't need till retirement, so that doesn't seem to fit the OPs needs.

LadyB49 · 02/01/2021 01:04

I think Martin Lewis said recently that premium bonds were the worst payouts overall taking the bonds v the chance of winning.

I do have £5k in National Savings Certificates. Interest is a bit better than savings account. You get your money in a week..

I'd have paid off some mortgage with the 20k.
Did you take any independent financial advice before putting it in the Isa. My Isa is doing nothing.Is a

TheBeesKnee · 02/01/2021 01:20

My Starling and Lloyds accounts pay me an interest for holding cash - O get a few pence per month. Does it have to be savings accounts? Most are not worth it imo.

If you'll need the money in 2+ months then I'd open an NS&I account. You have to hold your money for 1 month before you're entered into a draw, but withdrawing money has been very easy.

Moiraroseandthecrows321 · 02/01/2021 01:23

Is the post office a good place to put money?

Moiraroseandthecrows321 · 02/01/2021 01:27

Don’t want to hijack the thread but my gran has just died and when sorting out her bits we’ve found an amount of cash! Would it be ok to just take it into the bank or would they question it?

lionobserving · 02/01/2021 01:58

@Moiraroseandthecrows321

Don’t want to hijack the thread but my gran has just died and when sorting out her bits we’ve found an amount of cash! Would it be ok to just take it into the bank or would they question it?
This sounds very dodgy - why would you be worried about them asking where it's from? Surely that'd be easy to answer if you could just tell them your gran died so nothing to worry about?
Moiraroseandthecrows321 · 02/01/2021 03:54

Last time, which was years ago, I put a big amount of money into my bank they asked me loads of questions I’d sold a car! But my gran never had a bank account so I will have to go in and say we found it under her mattress! It sounds like a joke doesn’t it.

Brahumbug · 02/01/2021 07:52

Chip + 1savings app, pays 1.25% for instant access up to £2000. Above that up to £5000there is a small fee which reduces the interest rate to about 0.9%, still good for instant access.

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