What to do with inheritance?

[Friarclose]

Nc for this but pombears, penis beaker, sistine chapel etc

My dad died in Feb 2021 and left me and my siblings an inheritance. I have 40k left, its to put down as a deposit for a property however we're not actually going to be in a position to buy for around 5 years.

So I want to put this money somewhere where it will accrue interest but I still want to be able to access it in an emergency.

I'm not financially minded at all tbh. At the moment it's just sat in a 0.1% savings account. Any ideas gratefully received.

Premium bonds, but you might get no increase on your stake.

I would buy Premium Bonds. I get a steady 1.5% on mine over the year and still hope for a big win!
I have had £150 on 25K in 6 months.
Your capital is safe and if you do automatic adding of prizes to your holding then the new bonds go in the draw straight away.

Premium bonds or you could go with a savings account like Marcus, my current interest rate with them is 1.3%

Index linked national savings certificates, various terms available.

Actually, not sure these are still available.

Premium bonds (not best return) but v safe and accessible. www.moneysavingexpert.com saings dsMSE. Or a 5 year ISA

Talk to a financial advisor. This is their job.

Have you seen the lifetime ISAs? Don't be put off by the name of this.

www.gov.uk/lifetime-isa

You and your partner could each get them.

Nc for this but pombears, penis beaker, sistine chapel etc

What difference does it make if you have read previous well known threads?

Shares are at a low at the moment. You could make significant gains as they recover. At the current rate of inflation (9%) £40,000 will be only worth £26,000 in 5 years so you will need a high growth rate unless you believe inflation will drop

OP. Do NOT put money in shares if you think you might need to access the money within the next 5 years. Shares are long term investments that you need to be able to choose the time to cash out, not a short term investment where you might want to cash in with little notice.

Share values can go down as well as up

I would also say ISA , and fhrn index fund, a broad one.
Shares are very low ( on sale)

I'd use it to buy whatever property you can. Why can't you use it for 5 years? Get a buy to let if you can't get a main home. You won't have a problem with such a big deposit. Then you can sell that in 5 years and use it for your own home.

@converseandjeans because I name changed and didn't want anyone to think I was trolling.

Thank you everyone, looks like premium bonds might be the way to go. Unfortunately I can't buy to let as I'm renting atm and I can't afford mortgage and rent at the same time.

Reasons we can't buy yet is because dh and I have 3 dc between us, all at different schools and our rental is perfectly in the middle of them all however I do not want to buy in this area, I want to move some 25 miles away to buy however I don't want to do that while we still have dc in school.

You can opt for any premium bond winnings to be auto reinvested rather than paying out cash.

marcus by goldman sachs about 1.3% one of the best savings account better than 0.1% with your bank, premium bonds you might get nothing you might win I am not a fanbut you can use a combination say 10k with matrcus 10k in premium bonds 20k in a stocks and shares ISA cash ISA are useless as everyone can earn a £1000 of interest with no tax

Just buy there and then sell up when the kids leave. That way hopefully you’ll have your deposit back plus collateral. Ask your landlord if you can buy the house you’re living in now. You’re paying his mortgage when you could be paying your own.

Premium bonds.

A friend was advised this was the best thing to do with exactly the same amount of money recently.

Buy where you are if affordable. Mortgage repayments might be less than your current rent. Put any extra into overpaying the mortgage.

Hopefully in 5 years you'll have a good return on your investment to sell and buy elsewhere.

Agree Premium Bonds are a safe bet otherwise. I have a Vanguard S&S ISA which has seen very good returns, apart from covid linked blips.

Vanguard stocks and shares ISA.