We have a £300k inheritance due next month. We need a safe home. Shares or savings or both?

07 June 2022

Question by Stephen

We have a £300k inheritance due next month. we need a safe home. Shares or savings or both? If shares what is best safe platform?

Answered by Boring Money

Hi Stephen

As a financial planner I often see people receive an inheritance and for various reasons, feel the weight of responsibility to ensure they look after it and use it properly. I totally understand that and it's clearly not an insignificant amount of money we're talking about.

Although I don't know your full situation, I'd say that the most important thing for you to think about is what you want the money to do for you.

You mention a safe home, what does this mean to you?
Is it to keep it secure until you work out how you want to use it? if this is the case I'd suggest it likely to be best to put it into the best rate savings account.
If you want no limitations on when you can get it out then an easy access account would work best.
If you're happy to tie it up for a period of time to give you some thinking time, then I'd suggest a fixed rate account could work well as it will give you a higher interest rate.

Something to be aware of is deposit protection levels. You may be aware of bank deposits being guaranteed up to £85,000. If you are worried about the protection of savings in the bank you can split the money out between different banking institutions. More about this you can read here: https://www.moneysavingexpert.com/savings/safe-savings/

If you are comfortable investing and trying to grow this money, then yes there are lots of different types of investment options available. Conventionally this would be in investment funds, which we as financial planners typically recommend to people trying to grow their money.
Given inflation is so high at the moment, and savings rates are relatively low, money kept in the bank for the long term is losing value in 'real terms' and you can try to grow your money in 'real terms' i.e. ahead of long-term inflation by investing.

If you decide to invest, there are helpful tools on the Boring Money website to help you get started with investing.

Ultimately there are quite a few things for you to think about, to ensure you're putting this money to best use.

If you'd like to discuss this further, I'd be happy to do so and I can let you know the advice we typically give to those who are about to receive a substantial inheritance like you.

With best wishes


Answered by

Boring Money