£75K - advice needed on what to do with it

[Jaffapaffa]

I've very unexpectedly received £75K this morning - I didn't realise that DH who passed away in April had a death in service payment due.

I have absolutely no idea what to do with this amount of money - any advice is extremely welcome.

I don't have an ISA - I have never had enough spare cash - so I assume that would be a logical first step?

I would put £20k immediately into an ISA, Cash, stocks and shares or a combination of both but do your own research to decide what will work best for you.

You could also put £50k straight into a premium bonds giving you £5k to spend on yourself, a holiday, home improvements.

There is some decent high interest savings accounts out there, depending on who you bank with and tax implications.

I'm sorry for your loss.

Do you have any debts, do you own your own house? I would consult a financial advisor.

I'm sorry your DH died.

It's hard to answer without more context. What's your housing position? How are you doing generally financially, without his income?

Agree with the first poster 20k isa and 50k premium bonds. At such a sad time I wouldn’t rush in to big decisions. When my sister was widowed she had her dream bathroom and kitchen done, it was a huge mistake but she just wanted stuff done to take her mind off the situation.

Im sorry for your loss

£50,000 Premium Bonds
£20,000 ISA
£5,000 Holiday

I'm sorry your DH died you must still be in quandary if only in April. Did he have life insurance to pay off mortgage? In no you could put a chunk to pay down mortgage making in cheaper every month. You could do a stocks and shares ISA and government bonds are giving good returns ATM. Do you need a new kitchen or bathroom?

Gosh, so many replies already - thank you so much.

I've just spent all my savings on work to the house - mainly making it wheelchair accessible (DH had a lower limb amputation unexpectedly in January, and of course we had no idea that his life would then be cut short so suddenly), as well as new fascias and soffits, plus roof repairs.

Mortgage is paid off and I have a good pension 🤞.

Kitchen and bathroom are serviceable so probably don't need replacing.

Sorry for your loss and concur ISA is the best option and/or lump sum into the mortgage if you have one, plus a treat 🥰

Just seen your update on the mortgage. Premium Bonds would give you tax free wins plus instant access on top of the ISA

I'd put some in a SIPP, I'd have holiday, and I'd put the rest into a S&S ISA.

But my advice to you would depend on your age really.

No way would I buy Premium Bonds. The return is far too low unless you're very lucky.

(See Martin Lewis for more details)

On top of investments, what about an amazing holiday, bucket list kind of travelling. Do you have any children or grandchildren you could take? Or even hand out some cash presents too?

I'm so sorry for your loss.

The most useful thing I can say is this: £75k doesn't need a decision this month. Please don't let anyone rush you — including yourself.

Put it somewhere boring for now. An easy-access savings account will earn interest while it waits for you, and money in a UK bank is protected up to £85,000 per person per bank, so one account is fine. That's a perfectly good home for it while you deal with everything else.

The only real mistake you can make with a lump sum right now is a fast one. ISAs, premium bonds, investing some of it — all of that keeps. When things have settled, the rough order most people find useful is: keep a chunk easy-access as your safety net, then use ISA allowances (£20,000 a year), and only think about investing for any part of it you're confident you won't touch for ten years or more.

Be kind to yourself. The money will wait until you're ready.

I think if you’ve maxed out other tax free investments they are good, depends if the op is a higher earner or not as you only get £500 tax free interest don’t you so that reduces the headline rate of interest. They are also a bit of fun though if it’s been an unexpected cash as the op describes .

I’m sorry to read of your loss.

Id suggest 3-6 months of your core expenses/outgoings into an easily accessible account.

Start sinking funds for any larger expenses that might crop up in next 5 years (boiler, replacing car, etc).

Max out your ISA allowance (if DH had an ISA you can also have any remaining allowance he had transferred to you).

The rest depends on your general life plans, age, etc. If you invest further in pension you can only access at your pensionable age…do you want to reduce/stop work before then?

Highly recommend you take a look at Rebel Finance School…free on YT and FB.

Agree with don’t rush. And that makes a cash ISA and premium bonds a good idea for a few months while you think. They are tax free and thus mean you dont have to declare interest to HMRC.
Sorr6 for your loss

Having gone through the sadmin - as well as death in service, I'd also check for any pensions your husband may have held.

You only have the first two years after death to claim them before they're subject to tax (as I understand it) - so it's worth checking.

If you are over 50, SAGA do a good interest rate for the first year at the moment 💐

https://www.saga.co.uk/savings/saga-easy-access-savings-account?srsltid=AfmBOooQe1V6Rhuwu2WT7yZQ8RS4boQVHIXO3xiTp9b6JF1sDz4JGVIC

Thank you again for all the advice. I've opened an easy access account with Saga, and will look for an ISA today.

I agree that today £50,000 premium bond, £20,000 ISA and £5000 to spend is a good holding position while you consider longer term options. Don't rush into anything. Premium bonds and ISA are easy to get money our of once you've decided.

I’m sorry for your loss OP. In your shoes I would safely put the money away for the moment and not think about spending any of it until you’ve had some time.

So as other PPs have said, £20k in cash ISA, £50k in Premium Bonds and I’d put the £5k in an easy-access savings account, and any wins from the PBs can also go into that savings account until the next financial year. That way everything is safely put away, earning interest etc. and you don’t have to make any big decisions right now.

I am very sorry for your loss.

I would agree with seeking advice the position on here is everyone just runs to cash ice and premium bonds and nobody is talking about the biggest threats which is inflation eroding our capital. The bank of England came out earlier this year to stay there if you’ve been in cash since 2020, you’ve lost 19% in real value over that time we need to have a balance between emergency fund and investment. If you look at Australia they have been encouraged as a to invest and they are the wealthiest now.

I'm so, so sorry for your loss, OP.

I agree with PPs:

£20K into a stocks and shares ISA
£50K into Premium Bonds
£5K into a lovely holiday for yourself

Be ready to take £20K out of Premium Bonds in April 2027 to put straight into the ISA. Prioritise the ISA every year - compound interest is a very beautiful thing.

Premium Bonds are a great place to hold safe cash while you think about your next move and/or if you've maxxed out all your other tax-efficient options.