5k inheritance - what would you do?

[pinkassortment]

I've recently received a small inheritance of £5,000. Very grateful and although it's not a massive amount, I've not had any savings before and unsure where is best to keep it.

For context:

I currently still live with parents, but pay around £300 board in addition to topping up electric/gas and food shopping. I'm earning 20k p.a at the moment whilst I'm completing an apprenticeship (although not a school leaver). I'm also learning to drive which is costing £320 a month.

It's currently sat in my everyday savings account. I suppose more of a WWYD but where is best to look after this money as I'm weary of frittering it away. I've looked at LISAs but don't see me being able to afford to buy in the future. Also thought about shared ownership schemes but even with the qualification I'm studying for, my earning potential is likely to be limited.

WWYD or what is the sensible thing to do?

Thanks!

I'd have my flat recaroeted by a professional and sort my bathroom out. If I was living at my parents I'd save it for a deposit on a rental

Wary*

I’d save it towards a deposit too. Why do you think you’ll never buy? If you’re on an apprenticeship, then your salary will go
up. Won’t it?

You're young. Spend it on a really fabulous holiday - not a beach holiday, something you'll always remember. Somewhere with magnificent scenery - or trekking polar bears - or on a houseboat in India - whatever, but something memorable. You'll have plenty of time to be boring and sensible later.

I would save it for the future… whatever that may be… a deposit, a car, especially given that you said your earning potential will be limited.

I'd either use it for a deposit or a car

Holiday or car - something you remember in the future when you think of your relative. If it just goes into your generally savings, it will go on nothing in particular.

Obviously if you live somewhere where £5k is any kind of deposit, you could use it for that. But I’m the southeast, where you need £50k, that £5k is again just going to be subsumed and you won’t appreciate it.

I’d buy a £5k watch! Something to keep forever and maybe pass on to my own child.

I would stick it in a 90 day notice account or similar. Then there is no temptation to spend it.

I’d put it in premium bonds until you’ve passed your test, then use it to buy a car.

Towards a car? I'd keep some aside for the added coats of driving tests (which may need repeating if you fail and so on) and put the rest in a higher yield savings account. You won't get huge returns on 5k but I would expect you could get better interests rates than in an everyday saver.

Agree, I would stick it in premium bonds. You can get to it if you need, but not too easily.
Just hang on to it. Your earnings will pick up in the future and that r £5k will be good to have.

Stick it in savings and put it towards a car or if you move out in future ☺️

Did think about a car! As well as insurance for a year haha.

Where I've never had any type of savings before, I thought it'd be a good base to hopefully build up, as good as a big holiday sounds.

I live in Greater London so very unlikely I'll be able to buy around where I grew up. Could look at moving out a bit, in the long run of course.

My salary should go up by a few thousand once I qualify. With a few years further study and a bit of jumping about it'll cap at the national average of 35k most likely.

Thank you for all your suggestions, great to hear what everyone would do.

Spend a bit and save the rest.
There are plenty of savings accounts paying 5% interest atm.
Put it in one of those while you decide.

I’d bung it in a chip instant access account until I decided. 4.84% so not the very best interest rate but truly instant to get money out, and you could also add some more of your earnings to too it up, even if it’s just a tenner a week or something.

I'm just wondering why you are entering a relatively low paid profession, OP. Isn't there anything else you're interested in that could pay more money?

As someone else said, go on an adventure. Something you'll remember for the rest of your life. There's plenty of time left for adulting.

Id buy a beautiful piece of jewellery that I'd keep forever.

For heavens sake don't blow it on a holiday or a watch!

Put £4k in a Lisa and the government will put £1k in.

Put the remaining £1k into a savings account.

Keep adding to both.

@JaneBirkenstocks

This was my first thought, put in the maximum of 4k but concerned I'll pay a penalty if I withdraw without buying a house (which doesn't seem like a realistic prospect at the moment)

Either that or I won't see it until retirement

In response to entering a low paid profession - I left school at 16 and worked in care for a few years, the apprenticeships I could find in other sectors were all apprentice wage which I couldn't afford to live on whilst helping with rent etc.

University may be an option in a couple of years but didn't want to rack up debt whilst deciding what to do long term.

But I digress..

Savings account with a high interest is probably my best option.

Do not buy a watch or jewellery as that is ridiculous and you might as well throw it away.

I would definitely have a holiday but not an expensive one.
Then I’d put the rest in savings to get a car and deposit in the future.

I would also be trying to put at least £200 away each month whilst you don’t have many outgoings.

Agree do not fitter it. Can't believe anyone would suggest that to someone with no savings.
I would put it into premium bonds whilst deciding.
To me it looks like 2 half 3 on car.
1 into proper savings like a stocks and shares isa ( broad range index funds) and 1 as a cushion saving buffer.