best high interest account

[good2no]

Hello,

I have just received a small inheritance (about £60K). I want to use the money wisely.

I have two adult sons, each with additional needs. One is in residential car, but will be moving to more independent accommodations soon. One is 18 and unemployed. I want to give each son a smallish amount and put about £50K into a high interest account.

Has anyone any advice about what sort of account would be the best?

I would always recommend looking on Moneysaving expert to find the best deals for anything financial.
That said, when you suddenly come in to really large amounts like that, it would be worth talking to a financial advisor first. Or even (without knowing your son's needs) someone like MENCAP or Contact, might have specialist advisors?
It is a large sum of money you obviously want to work the best for you and your sons, and they might have specialist knowledge that we don't have ?

Honestly at the moment with £50k I'd put them in premium bonds. With maximum holdings you should do pretty well each month, then you can move them if/when you know what you want to do. There's a premium bonds thread on here so come and join us! I'd disagree with PP re financial advisor (sorry) the inheritance amount is relatively small (no offence meant) and most financial advisors won't be interested at all as returns will be low.

Agree with the premium bonds recommendation although keep an eye on the published return rate as it is likely to drop this year.

Other alternatives are fixed rate savings where you will get slightly more for locking the money away.

How long do you think you can tie the money up? If you don’t plan to spend it in the next 5-10 years it then might be worth investing some of it, or putting it into a pension, but that's more risky.

in the UK there are no high interest accounts, indeed there are none that pay near stated inflation let alone the real figure which is well over 3% (as you'll know if you buy fuel, energy or insurance which we all do, rather than hotel rooms and frocks which are used to fake the figures). This has been the case for years and will continue to be so for probably another decade or more.

premium bonds may well earn you nothing so inflation eats away even more.

stocks and shares ISA in tracker funds, obvious risk but no alternative. Sorry.

Thank you. This has given me something to ponder. I think the important thing is that the funds are kept safe for my sons, who are likely to need some help in the future. I know how easily money can just leak away.

money doesn't leak away except from inflation - and that is your problem. As governments for the last 10 years or more have wanted to discourage saving, there's no real solution.