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Original poster

Where to put money away for now

25 replies

tirednewmumm · 21/01/2023 21:27

Sorry I know this is tasteless but my heads a mess and so is dh. We have just lost someone close to us and discovered we are to inherit some money.
Emotions are running high and our initial instinct is to get rid. Give it away or reject jt somehow. We are both distraught really and can't think straight. We have daughter and a mortgage so really need to do something sensible but neither in the positon to tackle this right now. Again I understand this is a sensitive subject and people are struggling so tried to post in an appropriate place.

What type of account should we be using for this. Neither of us is used to chunks of cash but we want to be sensible for dd and to honour the person who worked hard in their life to earn it and has passed it to us in death.

We'd give anything for this not to be the situation but here we are Sad

OP posts:
KathieFerrars · 21/01/2023 21:30

Premium bonds would be safe. Sorry for your loss

BuddhaAtSea · 21/01/2023 21:32

Sorry for your loss!

A third for mortgage, a third for your DD and a third to ease off any financial burdens, because life is for living. Sort of a saving pot.

Original poster
tirednewmumm · 21/01/2023 21:33

Thank you I did wonder about that, we aren't worried about interest particularly but just need to do something to give us breathing space to think and leaving in current account seems risky.
I wouldn't dare take my card out of the house in case someone used it to hack me somehow. Normally there isn't enough in our account to worry about it

OP posts:
yousmellnice · 21/01/2023 21:39

Hi, firstly sorry for your loss,

You can probably open a cash ISA with your bank - that will take £20,000. Then there is NS&I bonds you could look at just to get it safely out your current account. You can open then in your child's name too. Then I'd take a breather and think long term at using some towards the mortgage.

userxx · 22/01/2023 09:45

You can put up to £50k each in premium bonds. I'd go down that route, shove it in their and comeback to it when you're both in a better head space.

tealgate · 22/01/2023 09:48

Premium bonds or an Atom account? You can open Atom up on line, bung it away for 6 months safely and then think about it later.

bertieb7 · 22/01/2023 09:57

Chase account can be opened quickly via the app and is safe, interest is just a bonus at 2.7% up to 250,000 I think

Frenchfancy · 22/01/2023 10:07

Make an appointment to see your bank. They will be able to advise you.

I'm sorry for your loss.

isthewashingdryyet · 22/01/2023 20:34

Premium bonds and cash isas.

so sorry for your loss

SaintJac · 22/01/2023 20:38

Similar situation last year. Check how much you can pay down your mortgage without incurring a fee. For us it is only 10% so we did that immediately and have put the next 10% in an easy access current account to pay the next 10%. Then maxed out ISA allowances for whole family - that’s 20k per adult and 9k per child. Opened ISAs online which was easy. Nb there are limits everywhere about daily transfer etc and the bank will likely check your source of funds for mortgage prepayment. Be prepared and have your answer ready - “inheritance” suffices (so as not to cry like I did!).

has inheritance tax been settled?

Original poster
tirednewmumm · 22/01/2023 20:42

Thanks all some good advice here. Good tip as well about being ready to have an answer rather than just burst into tears. Sometimes it's totally fine and manageable and then it just floors me.
Yes tax all settled by relatives spouse thank you

OP posts:
wouldukissafrog · 22/01/2023 20:50

F

inloveandmarried · 22/01/2023 20:51

HSBC were doing 3% savings account that's instant access. Fairly good return. Fixed isa £20k now and another £20k in April, there are some that are 4.75%. Both options are accessible.

isthewashingdryyet · 22/01/2023 20:52

Move any other money into a simple saving account with the bank you have your current account with. I can open one online and move money in 10 mins.

Then you can take your card out

tribpot · 22/01/2023 20:57

If you want to have the certainty of knowing you haven't got to think about the money for a while, I would definitely go for a short-term fixed account as other posters have suggested. The money goes into this savings account and you can't get it back out until the end of the term, you can forget about the money until then.

If the amount is over 85K, I would split it between banks to make sure you are covered by the savings protection scheme.

Hopefully you can get some breathing room to process your loss and not have to worry about the money until you're feeling strong.

HellcatSpangledShalalala · 22/01/2023 21:01

NS&I. They secure 100% of your savings even over £85k, ideally you would put some in premium bonds too but honestly the easiest thing to do right now is stick it all in an NS&I savings account and leave it there until you can think more clearly in a few months.

Sorry for your loss Flowers

Ilovetocrochet · 22/01/2023 21:05

I have just inherited some money from my mum, much more than I expected as she was in a care home with extortionate fees and I thought we would end up using all her money and selling her house to pay for it.

We cannot sell the house yet as we rented it out so have to wait until the summer for the lease to end but as soon as probate comes through, we can split mums money.

My thoughts are to buy the maximum amount of premium bonds and finish off the renovations of my house. That way I can forget about the bulk of the money until I am in the right frame of mind to make sensible long term plans.

I have never factored an inheritance into my financial planning and am already retired and don’t really need the money. I’ll probable give most of it in a series of gifts to my three children who are at an age when help with mortgages etc will be appreciated.

LondonLovie · 22/01/2023 21:28

Simple savings account for now. Even a couple of months will give you some much needed breathing space. If it's a really significant amount, you need to spread it out to ensure it is guaranteed. Check you don't have "more than £85,000 with a single institution"

Bunnycat101 · 23/01/2023 06:54

Premium bonds would be a good place to park if as others have said. Don’t feel guilty about the money. They would have wanted you to have it to enhance your lives. It can often feel very raw close to a bereavement and your reaction isn’t uncommon but once you’re ready to deal with it, hopefully the money can bring you a safety net or allow you to do something you wouldn’t have otherwise done.

kweeble · 23/01/2023 07:17

It may be worth paying any penalty on your mortgage to overpay as you’ll save on interest - it depends on how much you’d earn on savings. I’d prefer to know I own more of my home so it’s also a personal preference.

Original poster
tirednewmumm · 23/01/2023 10:31

Thanks all some really good advice here and sorry to hear others have been in a similar situation. It is a parent but we're only in our early thirties so a lot sooner than expected tbh and was awful and sudden.
Thank you again for the advice and kind wishes

OP posts:
Bucks67 · 07/02/2023 20:27

I wouldn't leave a large sum in cash or cash like savings for longer than a few months as inflation will eat into it.
It's worth having an emergency fund of 6months living expenses in something easily accessible however.
Have a look at your pension provisions and see if you on track, if not maybe some of the money you have come into could go in that direction.

Lcb123 · 07/02/2023 20:36

I’d split it between premium bonds and an instant access saving account. Sorry for your loss. When you have some more headspace, may be worth paying off some mortgage (if you’re allowed).

determinedtomakethiswork · 07/02/2023 20:51

I'm so sorry you have lost a parent or parent in law. I would open up a savings account within your own bank and just put it there for now. Please don't think of giving it away. They have worked so hard for that.

Sirius3030 · 08/02/2023 12:49

HellcatSpangledShalalala · 22/01/2023 21:01

NS&I. They secure 100% of your savings even over £85k, ideally you would put some in premium bonds too but honestly the easiest thing to do right now is stick it all in an NS&I savings account and leave it there until you can think more clearly in a few months.

Sorry for your loss Flowers

I agree completely.

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