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Inheritance?

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katzwhiskaz | 11:52 Mon 31st Mar 2014 | Personal Finance
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Iv'e inherited £20,000, any advice on where to put it to receive the best interest? I'm hopeless on money matters so please keep it simple
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depends on when you'll want to spend it / some of it. Generally speaking, the longer you're prepared to lock it away, the better the interest rate.

Have a look on moneysupermarket.co.uk or various other savings comparison sites, which will highlight the rates and terms on offer
If you put it in an interest-bearing account you'll be lucky to beat inflation, so your money will lose value. For most of it you would be best advised to speak to a reputable financial advisor ('IFA'). They won't normally charge you for an initial consultation.

In case you are wondering I am NOT an IFA.
Also, the Santander 123 current account gives you 3% in their current account if you have over £10K in there.

It's an exercise in will power to to spend it from a current account, obviously :) - but it's not a bad rate.

spend some, save some,
you might look at M and G if you want a bit of a gamble, the better the possible return, the higher the risk. I've got some in there and some in premium bonds
It depends on what your current financial position is and what your needs will be over the next few years. If you have any debts where the interest rate is above 2-3% then use pay a large chunk (or all) of these off first. I wouldn't spend money on an IFA for a sum of this amount- the fees will outweigh the benefits. Santander 123 is well worth looking at
You'll be able to put a good amount of it into an ISA after 5 April, so you won't pay tax on the interest (not sure what the limit will be for 2014-15, but I am sure someone else can tell you!)
Do you pay income tax?
\\\\I'm hopeless on money matters so please keep it simple\\\

Put the whole lot in Premium Bonds.
I agree. ^ Anywhere else interest rates are rubbishy and with premium bonds you could expect a regular flow of small prizes and you're always in with a chance of a big win.
You might want to consider property.

A terrace in a university town will breing in good income, you can get a letting agency to do the day-to-day stuff, and you pay tghe mortgage and akways have a saleable asset.

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