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Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

Original poster

What would you do with £50k?

44 replies

Wugglesworth · 19/02/2025 19:57

Just that really. I'm going to inherit £50,000 and not sure what to do with it. No debts, have my own savings, no big spends pending. Do have a mortgage but we have two years left on our relatively low rate fix, and not sure I want to just sink it into that anyway.

What would you do with the money to get the best return?

OP posts:
mumsickles · 19/02/2025 19:58

Premium bonds

Nousernamesleftatall · 19/02/2025 19:59

I would invest about 10k in silver at least. With the remaining 40k I would invest in property or part of a property.

Owmyelbow · 19/02/2025 19:59

I would stick it in premium bonds while I decided

CoastalCalm · 19/02/2025 20:00

Another vote for put it into premium bonds til the end of your mortgage fix then pay it off that

Aposterhasnoname · 19/02/2025 20:01

Another vote for premium bonds

Original poster
Wugglesworth · 19/02/2025 20:04

Wow, lots of votes for premium bonds! Thanks for the suggestions so far!

OP posts:
Ironrailing · 19/02/2025 20:04

Do you have any access to and other savings? If not maybe put away £15k in Cash isa or premium bonds and the rest I would invest in low cost funds.

Original poster
Wugglesworth · 19/02/2025 20:07

Ironrailing · 19/02/2025 20:04

Do you have any access to and other savings? If not maybe put away £15k in Cash isa or premium bonds and the rest I would invest in low cost funds.

Yeah I've got sufficient savings (enough to cover bills, mortgage etc for at least six months) that are accessible in a current account.

OP posts:
healthybychristmas · 19/02/2025 20:14

Is your current account earning interest?

EmmasDilemmas · 19/02/2025 20:20

It depends a lot on your attitude to risk and when/what you might to use it for. I’d put £40k into a stocks and shares ISA (£20k now, £20k just after the tax year change), and keep the other £10k somewhere more accessible like premium bonds. But I’m not at bothered by volatility and happy to sit out market dips - if you are worried by that, or if you might want it in the next couple of years for a big spend or to reduce that mortgage at renewal, then this probably isn’t the right approach for you.

NoBinturongsHereMate · 19/02/2025 20:21

How's your pension? What are your long term financial plans?

Original poster
Wugglesworth · 19/02/2025 21:57

healthybychristmas · 19/02/2025 20:14

Is your current account earning interest?

You've just prompted me to double check, and yes - but only 2% which isn't brilliant. Time to switch I think!

OP posts:
Original poster
Wugglesworth · 19/02/2025 22:01

EmmasDilemmas · 19/02/2025 20:20

It depends a lot on your attitude to risk and when/what you might to use it for. I’d put £40k into a stocks and shares ISA (£20k now, £20k just after the tax year change), and keep the other £10k somewhere more accessible like premium bonds. But I’m not at bothered by volatility and happy to sit out market dips - if you are worried by that, or if you might want it in the next couple of years for a big spend or to reduce that mortgage at renewal, then this probably isn’t the right approach for you.

Thanks for that advice, appreciated. I've got a DD and I think I'd like to earmark half of her so maybe something safer but with lower return. I could be more risky with the other half. I knew about the cash ISAs but not the stocks and shares one so thanks for highlighting as an option!

OP posts:
Original poster
Wugglesworth · 19/02/2025 22:04

NoBinturongsHereMate · 19/02/2025 20:21

How's your pension? What are your long term financial plans?

Pension is decent, always contributed since I started working. In my early 40s so got a way to go to retirement unfortunately. I've not really thought about my long term plans, which is why I'm flummoxed about what to do with this money! I guess anything to help me retire slightly earlier, so would be happy to pop say half of it away for the long term if it would earn more money.

OP posts:
ValentineValentineV · 19/02/2025 22:18

I’d put some in pension and some in a S&S ISA. Mine averages 14% compared with PB which are around 4%.

skuml · 20/02/2025 21:43

EmmasDilemmas · 19/02/2025 20:20

It depends a lot on your attitude to risk and when/what you might to use it for. I’d put £40k into a stocks and shares ISA (£20k now, £20k just after the tax year change), and keep the other £10k somewhere more accessible like premium bonds. But I’m not at bothered by volatility and happy to sit out market dips - if you are worried by that, or if you might want it in the next couple of years for a big spend or to reduce that mortgage at renewal, then this probably isn’t the right approach for you.

Yes totally agree !!

I would look into options such as

  1. Maximise your and your partners Stock and share ISA first. 20K each Max per tax) year
  2. Open kids junior Stock and share ISA (9K each child per tax year).
  3. If you are high tax income payer then invest it in Pension.
I would prioritize on "investing" rather than Cash ISA.

I would suggest to learn basics about ETF. you can invest in eft through all these accounts. Check investengine and Vangaurd.

Hope it helps.

Midgeymoo12 · 20/02/2025 22:37

Consider your tax rate, and if you will need to pay tax on interest. If yes - consider ISA. Stocks and Shares should outperform cash in the long term but there can be volatility - depends on your risk level. You could hold some cash / some S&S.

Interest rates are still very high. Trading 212 is a great platform - 4.9% interest on any cash instant access. You could use this while waiting on next years ISA allowance.

Premium bonds there is obviously no guarantee but fun if you win, and no tax on the winnings. I have full holding and won £250 Dec, but nothing in January :(

MomBruh · 20/02/2025 23:07

Assuming you don't get it before the end of the current tax year...

20k into an ISA. No brainer.

Agree, interest is ok at the minute - my Chip easy access actually earns more than my chip ISA right now but both at 4.5+ I think I'd put 15k in there.

Then 15k premium bonds. I have about that amount and made £600 in 2 years but the thrill.of the monthly draw (and endless daydreaming) makes it worth the lower return. I live a sheltered life.

SkiingIsHeaven · 20/02/2025 23:29

Go skiing again, book a couple of long weekends away and save the rest.

Oh and take the family out for a lovely meal. I might even take them with me for one of the weekends away.

rainbowunicorn · 22/02/2025 09:54

I wouldn't bother with premium bonds unless you have used your ISA allowance for this year. They are not a guaranteed return and the prize pot and the comparable rate is changing soon.

If you are risk adverse you can still get around 5% on a cash ISA. Stick £20,000 in now and another £20,000 in april.

Put £10,000 in a normal savings account, there are still plenty offering between 4&5%. Then open a regular saver that is offering a decent rate, some are offering up to 7%. Drip feed from the £10,000 into the regular saver to maximise interest.

If you aren't risk adverse then put into a stocks and shares ISA.

Finally go on money saving expert site for decent advice. Too many people on here just jump to the premium bonds answer.

LovelySunnyDayToday · 22/02/2025 13:04

Do premium bonds pay out that regularly?

RIPVPROG · 22/02/2025 13:12

If you don't need access you could look at fixed rate bonds , interest rates for ISAs etc are likely to drop and you could kick 20/30k away for five years with A 4.3% rate , it's something my parents have done, they are very financially risk averse, and just put a chunk away at a time rather than everything

RIPVPROG · 22/02/2025 13:13

Put the rest in a decent rate easy access ISA

Growlybear83 · 22/02/2025 13:20

I would enjoy the money - have a wonderful holiday, buy a new car, and lots of handbags 😆

NoBinturongsHereMate · 22/02/2025 13:53

Put £10,000 in a normal savings account, there are still plenty offering between 4&5%. Then open a regular saver that is offering a decent rate, some are offering up to 7%. Drip feed from the £10,000 into the regular saver to maximise interest.

The effective interest rate on a regular saver is lower than the headline rate (because most of the money is not in there for the full term). So it can be worth doing this, but you need to be sure the interest rates work in your favour. You can use https://www.moneysavingexpert.com/savings/regular-savings-calculator/ to check.