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The Finance Thread


Devon Malcolm
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I think we used to have one of these but the search engine on here is super shit so here's another one.

 

So, I will be coming into some inheritance money in the next few weeks and I'm going to be using the vast majority of it to stump down a deposit to buy a house next year. But what should I do with it in the meantime?

 

I want it to accrue a decent amount of interest (whatever it does accrue I'm going to put in my kids' savings accounts) but I also want to be able to easily access it if I need to withdraw owt before then. I basically want it to be about as accessible as my Santander current account is. My dad was blabbering on about ISAs last night but I haven't the faintest idea what he was on about.

 

Any advice?

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Depends on how much you'll be getting, the term you're willing to "invest" over & what sort of yield you want.  It's a shite time for standard savings ... high yield ISA may put 90-day access conditions on the money, plus there's only so much you can put into one of those, meaning you may need multiple accounts.

 

Independent financial advisor would be the way forward, BUT beware the tax implications whatever you choose.

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The rates on ISAs are shit atm, but it's still better than leaving it in a normal account as the interest you earn isn't taxed. So, yes, it's better than nothing. But you need to think about what your risk appetite is, as you could get a better rate on higher risk investments.

Yeah, I wouldn't want to risk it at all because if I lost it I would lose my only opportunity to buy a house.

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Well definitely do the ISA as a start. You can put around 12k in it for tax-free interest.

 

Though when I say risk I don't mean rush losing it all, I mean go for an investment product with a little risk attached to it suck that there's a chance you'll lose a bit of the money, but also a good chance that you'll get a much better return than an ISA. So if you cold stand to lose a little and still buy your house maybe worth considering.

Edited by Chest Rockwell
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Ahh, now I get you.

 

I should point out that it's not really an inheritance as such but more a pre-carking it gift. It's not technically a part of a will or anything, so I don't know if that makes a difference to all this.

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Ahh, now I get you.

 

I should point out that it's not really an inheritance as such but more a pre-carking it gift. It's not technically a part of a will or anything, so I don't know if that makes a difference to all this.

 

I'm glad you said that because the original post sounded like you were planning on pushing someone down the stairs.

Depending on how the money is given to you will effect the tax you have to pay on it. but the basic rule as mentioned is 'easy access to money = low interest, no access to money = higher interest' so if you want both you might be best splitting the money into two accounts.

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Don't worry, I'm not about to be the star of my own Fritz Lang noir.

 

Obviously I was delighted when I found out we were getting this money but ever since it's felt like a pain in the arse and fraught with all manner of charges and things that can, might or will go wrong. From what I was told though, they said that I wouldn't have to worry about the tax on it but I will ask for some clarification on that.

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You should definitely check on the tax. I forget the exact figure but in probate there's a number of years prior to death (seven years I think) in which it's checked if large sums have been passed to a relative to avoid inheritance tax.

 

How they check is another matter of course.

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I took PPI out with one of my credit cards a fair few years back but am unsure whether I was actually eligible for it at the time of getting it. I was working 15 hours a week at the time, though this would eventually increase to 25 and then full time.

 

I'm scraping the barrel here and don't expect anything, but is there any case for being mis-sold? Does anyone have any experience in claiming it back?

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I took PPI out with one of my credit cards a fair few years back but am unsure whether I was actually eligible for it at the time of getting it. I was working 15 hours a week at the time, though this would eventually increase to 25 and then full time.

 

I'm scraping the barrel here and don't expect anything, but is there any case for being mis-sold? Does anyone have any experience in claiming it back?

 

As it goes, I clawed back £20k PPI monies last year.  So you may say that I have experience.  Send a letter (I can send you a template if you need), & for the cost of Signed For postage, you could be in for a few quid.

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£20K in PPI? I don't have a clue what PPI is other than the messages you get from the scumbags who bombard you with mail but is that compensation or refunds?

 

Yep, seriously ... £20k from 2 cards I had back in the early to mid-00's ... both written off, 'cos the "legal" bits weren't legal & both lenders knew it, so had no option but to zero my balance & I closed the accounts.  Then a year after that, I got 'em back with the PPI.  And in about 7 weeks time I'm going after every payment I ever made to them, as they were in breach of any number of regulations ... may see another £20k plus interest come back if I'm lucky, £6k - £8k plus interest if I'm unlucky.

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