Where best to put this ££ gift?

[Hagqueen]

I’m very very grateful and lucky to receive £10k from a family member.

I need to find the best account for putting it away where it can generate some interest.

I intend on using about 10% in the next few weeks, to pay off a small amount of debt, and then the rest will be saved for when I buy a new home, most likely towards home repairs on a new property etc.

I want it to remain easily acessible, but happy to hear any suggestions for the best account to accrue interest?

If you want to keep it accessible, and presumably not risk the capital, the best interest rate is about 0.55%, so about £50 a year in interest.

Or you could buy premium bonds as you're reasonably likely to win at least a couple of prizes a year, which would be the same result, or you could win more. You can get your money back within a few days but it's not suitable for taking money in and out as you miss draws every time you do this.

You could then join us on the premium bond thread.

Oh, I will look up premium bonds and see if i can get to grips with how it works. I could potentially split into different pots.

In all honesty, I’m not likely to need this money in the next 12 months, but I have this fear about maybe needing it urgently if something happens to my existing property that requires a big cash injection.

Hopefully there’s an idiot’s guide to premium bonds out there!

Check out the moneysavingexpert site for this

HSBC currently have a 1% bonus offer but £10k minimum. If your debts are interest free can’t you just save all the windfall as you would of had to have paid the debts anyway. If you use the windfall to pay them off what do you intend doing with the debt money? Are you planning on putting back to top up the windfall or using as additional spending money?

Yes in your situation I would say premium bonds as usual interest rates are pathetic. I would say a low risk fund but a low risk is still a risk and if you need the money at some point you may end up having to withdraw when it’s a couple of thousand down.

Thanks for responses.

The debt is not interest free and to be honest, I just want it gone, I’ve knocked it down from about 7k and its hanging over my head.

I plan on topping up the missing 1k but it might take a while as am using my ‘pay off debt’ money that I allocate monthly prior to the windfall to fund some small upkeep on my house to prepare it for sale.

Thanks for all advice!

Have you got a LISA account? Government add 25% for house purchases