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

[JessicaRabbit23]

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……

Thanks, that’s really useful info. I’m selling my house later in year and was wondering how I was going to split the money up to keep it safe while I was renting and looking for a new place.

@paint101 Ns&I direct saver. Protected up to £2m I think. Much simpler than multiple accounts

Hi how do I declare it if I stop doing tax returns?

There are special rules if you receive inheritance.

You are covered up to a few million I think for a set period of time not just the 120,000

Just do a search on money saving expert.

Assuming you are a basic rate tax payer, you don't need to declare your interest from your savings in the bank @Chocoholicnightmare unless you are earning over £10,000.00 per year in interest.
The bank(s) who hold your savings and pay the interest to you, declare to HMRC how much they have paid to you in interest and your tax code is adjusted accordingly.

I have 40k in my trading 212 isa earning me over £5 a day. Easy access. Best one on the market by far. This was with an extra top up from MSE.
I did have120k in chase earning me about £416 a month but I now have £185k in chase, I will be putting more in the next couple of days as I did not realise I’m protected for 6 months due to inheritance. It’s annoying you can’t transfer more than 25k in one go. so will be over £900 in interest a month. Only going to be in there until August which protects me since receiving inheritance anyway. And it’s easy access but if I make more then two withdrawals I loose the added bonus forever. I signed up to a new savings account with an extra top up for joining through MSE 4.5%

Thank you for your detailed response. I am moving all money into Chase for now. 👍🏻

I’d be worried putting all my money in an internet bank.

I also have a Chase account and when I wanted to pay for a holiday with a few thousand I’d saved for the purpose they blocked it and made me jump through hoops. Which was reassuring from a security point of view but also inconvenient.

Also when DD changed phones it wasn’t that straightforward getting access to her Chase account.

Just jumping on OP post (sorry).

I've just received inheritance £200k and don’t work. Do I need to notify HMRC as won’t earn over my £12,500 tax allowance.

Any interest or investment income from your inheritance will be subject to tax if it pushes you over the threshold.
It's recommended to submit a tax return for any year you may get interest/ investment income. HMRC said I didn't need to do a return when my income was all from an invested inheritance and below threshold, then they changed their minds. Fortunately I had good records.

have a look at NSI I’m sure there is no limit on protection as it is backed by the government. I could be incorrect