Urgently need to open a high interest account in which to deposit a 6 figure sum

[NCNCNCNC10]

I've inherited money and it is going to be paid out soon (Probate was done surisingly quickly).

I have been trying and failing to open an NS&I income bond account for a few weeks (very long boring story about how you need to apply by post to get online access and passwords and how a crucial letter from them to me has gone missing in the post).

The reason I went for NS&I is because the money is coming from my late parent's NS&I account and I thought this would be easier. But NO!, it seems computer says NO.

I'd like an account where the money can sit for a few months while I make decisions about pensions and mortgages etc. Obvs I want it to earn maximum interest while I do that and then be able to move money out without too much notice or penalties.

Can anyone kindly give me any pointers? Thank you.

Chase are offering 5.1% on an instant access saver account, gives you the flexibility to move when you have made decisions and a decent rate during the decision making period.
am envious as still waiting for probate 😣

First direct, aldemore and chase very easy to deal with all online.

Bung £20k into an isa

I'd suggest £50k into PB but if you're having trouble, maybe not?

I use Raisin which is super easy for sums of that amount @NCNCNCNC10 - they have rates around 4.8% for total easy access and higher if you want to keep it in longer.

If you want to go with then drop me a pm and I’ll give you a code we can both get a £50 bonus.

What bank are you currently with? They will probably have savings accounts and it should be easy to open.

Chase was quick for us and they have good rate for instant access. Think it’s 5%

Agree put 20k in an ISA. (Or 40 k if you have a DH) to shelter it from tax.

Thank you for replying.

The issue is 1. lots of high interest paying accounts have a maximum deposit limit or 2. have a maximum withdrawal limit, or restrictive notice periods.

I just want a holding position for a while until I get some advice from a financial advisor and this is why I asked Mumsnet.

If I Google I will get hundreds of results and I find it more helpful to ask for advice from people who have been there done that.

I have an easy access account with NatWest that pays about 4% for over 100k then I have more longterm higher fixed rates which lock the money away for 12-24mths . One had rolled over this year with an increased interest rate. Also ISAs. Again fixed rates.

I also have a pension fund for dumping money into to avoid higher rate tax on my earnings. I’ll have to pay tax eventually but will be able to draw down 25% tax free at some point. It is higher risk but DH who has a similar set up has seen a growth of over 7% on his since 2019.
I would advise talking to an independent financial adviser.

With money saving expert website you can filter for instant access.

I had a similar sum from a divorce.

www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

This gives instant access.

Chase is currently top but you do apparently need to open a current account with them.

Oh that is quick, I’m a few months different but I’d been thinking it would take a year

Exactly this!

I’d leave a bit of headroom re premium bonds £50k mac so any winnings can be reinvested and don’t create another headache!
Yes to using the isa allowance if you don’t already as a matter of course
from the Martin lewis site I’d attempt the Yorkshire building society account as looks easy to open, doesn’t have a low maximum deposit and no pre-requisites such as you need to already have another account.

I am happy with a Marcus account. You can open online and it links to your current account so easy to move and It has paid quite good rates

I'd put half in Chip and half in Tandem

Good interest rates and very easy

Kent Reliance currently paying 5.11 on instant access. Also good YBS and Ford Money. Remember only £85000 is guaranteed if a bank fails do I would spread it around.

Ulster Bank Loyalty Saver, 5.2%, balance must be over £5k, unlimited access for withdrawals.

There are loads that have neither of these, but don't put more than £85k with any one institution unless for less than 6m

Just out 'easy access savings' into Google
It'll take 5 minutes to open one.

Eh? The OP has clearly not heard about a useful website where she could have got the info she's looking for, more quickly and helpfully than by posting a thread and gathering answers from people who may, or may not, know what they're talking about. I was being helpful. What's not ok about that?

I second Ulster Bank. You'll need to open a current account first and then you can have a Loyalty Saver, instant access and will pay 5.2% on balances over 5K.

The only problem with that advice is timing. The OP hasn’t decided what to do with the cash yet, and wants to park it for a few months. But if it’s only in premium bonds for 3 months and she times it wrong, she is unlikely to get anywhere near the theoretical 4.4% tax free rate implied.

Premium bonds are only entered into the draw after you’ve held them for a full month, and the draw is on the first of the month. So, buy some today, 8th June, and they won’t be in the draw until 1st August. If they are then cashed in at the end of August they’ll effectively get 1/12th of 4.4%, which is less than 0.37%, or less than 0.5% gross to a basic rate tax payer. But, at 5% in a regular account for 12 weeks you’d get the equivalent of 1.15%, so nearly two and a half times as much. Though, of course, one could win £1m…or, more likely, nothing ;)

If it’s short term while you figure out where to put not long term then interest rates aren’t really important. More important is accessibility. As pp have said talk to your current bank about the best product with instant access. More important decision is where to put it long term.

But @Tryingtokeepgoing dumping her £50K in a Premium Bonds means (lawfully) avoiding paying tax on that amount, which would be unavoidable in most other accounts where she would have to pay tax on interest if she earns £1K or more (if she’s a basic rate tax payer). Too tired to do the sums and I don’t know when HMRC expect payment, but she may be better off buying those Premium Bonds asap.

I’ve already taken tax into account in the numbers I used by grossing the NISI rate to an equivalent rate for a basic rate tax payer :)
For such a short period premium bonds are generally a bad idea

Came on here to recommend the Chase instant access but see you beat me to it.

yorkshire building society is currently paying 4.8% on instant access. My money is split between there and premium bonds. i have just advised a friend to do this with her inheritance money while she looks for a house.

Chip - easy access ISA, no tax
Tandem - online easy access saver
Atom - 6 month saver

Can open them all in about 10 mins online.
All over 5%
Don't put more than £85k in any of them.

And definitely Chase.