Best high interest account for inheritance lump sum

[PersephoneParlormaid]

I’m getting an inheritance (£100k) and I want to put it an a high interest account and just leave it there. Yes I’ll be using it for an ISA every year. Looking for an account where I can just pay it in and leave it is driving me mad. The ones I’m looking at are ‘savings’ accounts so they want you to pay in every month.
Is there a bank where I can just deposit my money and get good interest?

I got 4.5% with a Chase savings account recently. You may have to move the money around a bit though as the good rates often don’t last too long. I think Chase is guaranteed for a year. As well as the £20k in your ISA though I’d put £20k in premium bonds (assuming you’d benefit from not paying tax on interest).

I like the look of HL active savings, thanks.

NS&I British Savings Bonds. Fixed guaranteed interest rate for the term of the bond. You can't access the principle during the term, but you can opt for receiving your interest as growth, or monthly income (if you wanted to spend it on holidays).

Put £20K each in a: 1 year - 2 year - 3 year - 4 year and 5 year bond.

As each year matures, move the sum into a Cash ISA.

Whilst the rates are slightly lower than variable savings accounts, at just over 4%, they are fixed for the term of the bond and guaranteed, Set up and forget -you only need to move a lump sum into an ISA at the end of each year.

www.nsandi.com/british-savings-bonds

If you invest in a longer term bond and the interest isn't available until the end of the bond term you will be taxed on the interest in the year it matures. You could get months interest paid away and then invest it.

A good way to start in S&S is a small regular investment of day £50 per month into a global tracker or multi asset fund. Vanguard Lifestrategy, BlackRock Consensus or HSBC Global Strategy are good ones to look at. Choose a risk profile that suits you but don't be excessively cautious. Regular investment has the benefit of pound cost averaging.

You can opt for interest to be paid monthly for NS&I British Savings Bonds for all of their 1 to 5 year bonds..

I have fixed rate bonds with the following banks - interest all paid monthly:
UBL
Hodge
First Save
Paragon

Chase

Open a Chase using my refer code & I get £50 & so do you

One code per person

RDN38U
Put in 1k to start
https://chase.co.uk/raf

I use Zopa as their boosted savings account rate is 4.5%, plus they have a regular saver account which I put £300 a month in for 7%.

Savings accounts in a nutshell
*Regular savers - headline grabbing interest rates currently 6-7% but you can only put a set amount in a month usually £2-300. The interest is accrued over the year and not on the total amount. Rough rule of thumb to calculate the interest on the amount you have half way through the time.
*Easy Access accounts - more flexible with amounts within min/max set for the account.
Rates can be lower than fixed accounts and they can go up and down. Often you will find that they move with the bank of England base rate - it goes down 0.25% Your rate goes down 0.25%
Often the interest has two parts X% plus bonus %for the first 12 months. This means that after the 12 months is up the rate is no longer competitive and you need to move the money.
*Fixed accounts - you can usually only put the money in during the first 30 days and after that you can't access the money (if it's a fixed ISA you can get the money by closing the account). The rate is fixed at whatever it starts at. You can fix for between 6 months and 5 years usually
*Notice accounts half way house between the two you can take money out but often a couple of times a year and with 30-120 days notice.

Assess what money you will need in the next 12 months. Put that in a mix of an easy access account or short fix/notice accounts depending on what sort of notice you forsee needing.
Put next year's ISA money in a 1 year fixed account

It's likely that this two chunks of money would broadly use your £1000 tax free interest.

Then look at tax efficient ways of saving the rest - tax is paid on the interest of savings when you have access to the interest so putting some of it in a 2 year fix might be beneficial or you could look into to premium bonds - look at what people with "typical" luck win for the amount you would be looking to put in to estimate the savings rate you will be getting

The most important thing to remember if you are getting overwhelmed with options is just do something. If it is you current account earning nothing and you move the whole £100k into an account at 3%. You would earn £3000 in interest. Whilst you might pay tax on the amount over £1000 and you could have got 4% in a different amount. You will be still better off that keeping it in the current account wondering what to do.

If you have existing savings in a bank be mindful that you are only protected up the £120k per person per financial institution

Overwhelmed is exactly how I’m feeling @Superscientist . Like you said, I need to do something, so yesterday I slid it across to a 1% account in the same bank. I know 1% is not a lot, but it’s better than the 0% it’s been getting.
i like @SpringTeaCup idea of putting it in bonds so that I put it in an ISA as it matures.
Im going to look for a good ISA for 26/27, and then I will do something better with the money, small steps rather than getting overwhelmed.
Thanks

Marcus Goldman Sachs easy access. 3.75% no limits on withdrawals.

Several Coventry savings accounts have the advantage that they offer monthly interest. The fixed rate ISAs pay the money to another account, possibly useful if you want to use the interest towards holidays. Have you used this ISA year's allowance? If not, you've probably just got time to open one - two fixed rate until 2028 or 2029, both at over 4% or a variable rate one offering up to 6 withdrawals .-3.54% for monthly interest, but you can open one by Thursday and put your money in, and then use those withdrawals to move it into better paying accounts, while being able to put another 20K in an ISA next year. They also have fixed rate or 6 access savers for the rest - again, you could open the 6 access one while investigating a better rate at all - it's more than nothing or 1%.

I know that those aren't the best rates, but if you're feeling overwhelmed, a 6 x access account will earn you something while you work out what you want to do with the money longer term, and then you still have penalty free access until you're ready to move the money into higher paying accounts.

Nationwide has a new range of fixed rate ISAs starting today, with rates of 4.35% (1 year) to 4.5% (5 years). Nationwide allows you to have portfolio ISAs - to split your allowance between different ISA accounts, if you're happy to lock away some of your money for a while, though with £100K to save, that might be less important than earning some interest now while maintaining the flexibility to make longer term financial arrangements whenever you're ready to do so.

I used Cahoot and was quite pleased with it.

I go for fixed rate bonds.

Now is a good time to start one.

dont put it all in the same account. It wont all be guaranteed if the provider goes belly up . I think only 85 grand or so covered so definitely split it between accounts

It's £120,000 now that's guaranteed.

oh ok missed that. thanks for the info

I have my ISA maxed out and any excess in the Limited Edition Saver at Ulster Bank (part of Nat West) - it's 4.17% gross, 4.25% AER atm.

Max out your ISA allowance first. Then SIPP.
For the remainder, if you want to save it and not invest it, my Revolut account pays 4.5%, but obviously you’ll pay tax on that. Would highly recommend doing the Rebel Finance School course (it’s free), the next one should be starting in June

Chase bank

you can get a one year bond with reasonably good interests rates either paid monthly or yearly
You need to keep the money in for a year.