Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Flip

1 2 3

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:

ErrolTheDragon · 02/01/2021 07:55

You should probably start a different thread under the Legal board, moira - did she have a will, and has probate been granted?

TeacupDrama · 02/01/2021 07:58

@moiraroseandthecrows my MIL kept loads of cash hidden in house just went to bank with it no problems even with 7k just explained she was a hoarder and found money hidden, some was really old when banknotes were huge and white. The bank will take notes however old at face value, but a big white £5 is actually worth more than £5.

lanbro · 02/01/2021 07:59

Definitely premium bonds, I've made £175 in 3 months and I haven't got huge amounts in, much better than any interest rates at the moment

Interested in this thread?

Then you might like threads about these subjects:

General money Savings & investments

TeacupDrama · 02/01/2021 08:00

For OP Marcus accounts by Goldman sachs pay more interest than average

PleasantVille · 02/01/2021 08:06

@caringcarer

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

Do you have a link to which stocks and shares ISA that is please @caringcarer I can't find one that pays inerest, I don't have much spare and don't want to risk losing money.

ErrolTheDragon · 02/01/2021 08:21

Do you have a link to which stocks and shares ISA that is please @caringcarer I can't find one that pays inerest, I don't have much spare and don't want to risk losing money.

They don't pay interest, their value can go down or up depending on the stock market.
The expectation is that if held over some years they will grow significantly better than interest rates but if you need the money at a point where the stocks &shares in yours have gone down then you're stuffed.
An index tracker bought into 10 years ago would be showing a decent gain at this point, whereas one bought this time last year would probably be showing a loss , and would have been really bad at some points this year.

So this type of investment is generally good for long term investment (as is having a stocks&shares component in pension funds) but not for short term or for money you really can't afford to lose.

If you do buy stocks&shares ISAs, look carefully at the charges too.

Caramel81 · 02/01/2021 08:22

Shawbrooks bank. They have a really good rate compared to others and I can’t touch the 5k I put in for 5 years.

Monkeytapper · 02/01/2021 08:23

What’s the interest in the ISA?...ours is a shocking 0.01 % at the moment, we have cash sat in one making peanuts so need somewhere to put it that’s better interest but rates are so low at present.

RollOnForever · 02/01/2021 08:28

I've been wondering something similar. I have some savings sitting in an old ISA not doing very much and gaining hardly any interest. I've decided 2021 is the year I sort my finances but unsure where to begin!

HeronLanyon · 02/01/2021 08:30

Premiums bonds or one of their other savings accounts - interest poor but so it is pretty much everywhere.
National savings and investments NS&I - full range of their products with good info on them on their website can do everything online and manage online. Also much much higher levels of protection than the 85k per banking group for standard bank accounts.
I’ve ‘won’ around 5% on my premium binds in the year I’ve had them. Not everyone does obvs.

huuuuunnnndderrricks · 02/01/2021 08:35

Premium bonds , we have loads and they are an ideal place to keep them safe while gambling a little .

Heyha · 02/01/2021 08:39

Premium bonds for ease- you get the money returned to you very quickly should you need it, it's all online and very simple to use. I saved monthly for my maternity leave and 'paid' myself back out of the premium bond pot each month with no bother or delays. I won £25 and the most I ever had in it was about £5000 just before I started withdrawing it again so I was happy with that rate of return!

Clawdy · 02/01/2021 08:45

Definitely Premium Bonds. I love that checking each month to see if I've won! There is always that chance of being the big winner too!

Mrsmorton · 02/01/2021 08:45

Agree with chip 1.25%. You need someone to invite you (and I just invited someone!, sorry! ).

dealornodealer · 02/01/2021 08:46

@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?

Mil actually had this with her df. She took a copy of the probate into the bank and they photocopied it in case any questions were asked later.

ErrolTheDragon · 02/01/2021 08:50

@RollOnForever

If it's long term savings, transferring to a stocks & shares ISA may be appropriate. Something like an index tracker with low charges perhaps.

RollOnForever · 02/01/2021 08:53

Thank you Errol. Yes long term but with the possibility of accessing were we to ever one day find our dream home...

BarbaraofSeville · 02/01/2021 09:07

What's the interest rate on the ISA? Most are terrible these days and there's no advantage of an ISA Vs normal instant access for most people due to the personal savings allowance.

On £25k (the total amount you have left after the amount you're planning to keep in your current account) I'd put the lot in premium bonds as the payout rate is likely to beat any cash savings, although it sounds like you've chosen a 5 year fixed rate ISA so this may not be an option now.

£5k in PBs is more risky as you're less likely to get close to the payout rate so you can either take a risk or just get the best instant access rate, which is currently 0.6% so £30 a year, so you might decide it's worth gambling this amount of interest on a chance of beating it with PBs.

GETTINGLIKEMYMOTHER · 02/01/2021 09:19

Premium bonds. You might just win something and they’re safe, plus quick and easy to cash in, if and when you need to. Savings accounts are all rubbish at the moment.

dontgobaconmyheart · 02/01/2021 09:25

I'm not sure I'd have gone ahead with the ISA OP without looking into this all first. Rates aren't great at the moment on them.

Although it isn't to us normal folk, 5k isn't a lot in banking terms, I would go on your banking app or website and look at the full list of services. Seems odd they don6have a basic saver you can put it in. Interest rates wont be high on it anywhere I doubt.

If you have a mortgage look into paying into it.

It all depends when you might need to access it really and realistic expectations about what you might need in an emergency - job loss,new car, home repairs etc.

wantmorenow · 02/01/2021 09:39

Not sure if you have a mortgage but if you do, have you considered an off-set mortgage. You will be able to keep the savings earnings an equivalent rate to your mortgage rate but have access to them if needed.

Works out very efficiently.

Dyrne · 02/01/2021 09:41

Investments definitely aren’t the way for money you may want to access in the next 5ish years - you need to be able to hold firm to ride out dips in the market. So it’s a good option for the £25K but not the £5K OP wants to have available.

I’d go with premium bonds OP. Easy enough to access in an emergency, but just enough of a faff that it’ll put you off dipping into it for frivolous reasons. The wins are random, but some people reckon £5K is the minimum you need to actually generate a decent return based on probability etc.

Alternatively, have you paid off all high interest debt? No point in having £25K sitting around earning 2% interest if you’re paying 10% interest on a debt somewhere else...

profilechange · 02/01/2021 09:49

If your ISA is in a 5 year account make sure it's in stocks and shares and not cash. Stocks and shares will go up and down over the years but you'll get a much better return than in cash. You can have a conservative portfolio or a more riskier one but definitely a much better option.

GETTINGLIKEMYMOTHER · 02/01/2021 09:54

I do agree re S&S ISAS , but you do need to think long term with those, so not recommended for anyone who’s going to panic when there’s a dip in the markets.

profilechange · 02/01/2021 10:00

@GETTINGLIKEMYMOTHER exactly that, but if she's thinking of five years for the ISA that is about right, gives the S&S chance to settle.

Flip

1 2 3