Where to save?

[Gremlinpoop]

I am due a small inheritance, that I would like to use as savings. Please can someone tell me where is best to save?

Interest rates are appalling now.
NS&I (National Savings and Investments) seem not to be too bad.

It depends on what you term 'small' and also what your attitude to risk is.

I've just bought myself some Premium Bonds, working on the principle that the interest that money will earn elsewhere is so little, I might as well chuck a bit at the tiny chance of a big win. Even a small win (£50) will beat interest rates. But obviously there is a big chance you won't win anything. The odds of the million are very long indeed.

The best interest these days seems to be on what they deem current accounts, but you have to jump through their hoops and be prepared to have money coming in and out and set up direct debits etc ,, and then there is usually a relatively low limit on the amount they will pay interest on.

I can't tell you what to do...

But I am in a similar predicament right now with my earnings...there's absolutely nowhere worth saving...

I mean the regular savers have a limit, and even then the interest isn't going to be that much, and normal savings accounts are between 0.7 and 1%....

I'm just overpaying my mortgage, and putting the rest in premium bonds.

Thank you. Will have a look at NA&I again but my children have accounts with them and we have as yet been able to contact them about address change so I am rather put off them.

@Gremlinpoop can the change of address be done online? They are very busy at the moment due to having the best interest rate out there, so it's taking ages to get through by phone.

Nowhere will give a good return on short term savings.
If you are intending to use the money in 10+ years time, then invest it.
If you are looking at using it in a shorter period of time then expect it to lose money against inflation, so spend it sooner.

With an inheritance, park the money somewhere safe... make a plan for what the money will be used for and then execute that plan.

If you do not already have an emergency fund, I would allocate 6 months of expenses to that and park that money in whatever instant access account you can get.

I tend to look at moneysavingexpert.com for best accounts/rates and saving strategy etc.

I changed our address for my daughter's premium bonds OP, there was a form on their website to print and fill in. It took a little while to hear back from them, but that might be better than hanging on the phone. You can also change it online if you are registered online, we weren't so I asked how to do this and they sent me paperwork to get set up.

We put all our spare cash into premium bonds at the moment.
We win most months. Easy to access and withdraw cash.

We are not registered online so can't do it that way. Can't ever get through on phone to ask for another way. The chat thing also never works. Our post redirect runs out next month.
I am looking for a long term savings account for this money is 5 y plus us fine.

In that case perhaps look at a Stocks & Shares ISA and invest in a global diversified fund. Vanguard has a low cost platform and has LifeStrategy funds which are fairly low cost and have various risk level choices. It is investing though so you can make a loss. I would look at using LifeStrategy 40% equity, so 60% is gilts/bonds which may smooth the ride but would also not have as much return as higher equity level funds.

NS and I have just reduced their interest rates 🙄

Yes they have but I think premium bonds are still the best bet.

For those on low income 'Help to Save' via the Government is amazing, but only £50 per month for 4 years.

I also find the Vanguard LifeStrategy products a good option if you aren’t a seasoned investor. You could do that under the ISA wrapper. Or top up your pension as that’s tax efficient. Or pay down the mortgage.