One of my grandparents recently passed and I received 12,000 pounds in the form as a massive stack of 20s as my inheritance. I’m 19, in university and live at home. I want to be smart about it and invest it and use that money for a down-payment down the line, but with the recession and whatnot I’m not sure if investing it immediately is a good idea. I also am unsure of how to put it all in a bank as it’s too much for an atm.
24 comments
Put it in a savings account or ISA or invest in stocks that give dividends.
As for putting it in just take it to the counter of the bank or just do chunks at a time at the atm
Do invest it, and it might rise, stagnate or lose value.
Don’t invest it, and it will definitely lose value (inflation) – at the moment, rather staggeringly in speed, in fact.
So the trick is either to invest it well, or spend it well. See r/ukpersonalfinance. Spending on education, training, or even just experiences are all valid.
You can literally go to the bank to deposit the cash. This is recommended. They _may_ have questions for you about the source, but explain the inheritance and provide any documentation they ask for.
First and foremost, be careful if anyone dms you saying they are a financial expert, be very very careful who you tell.
The safest bet is it put it straight into the bank, in an easy saver for now, as you think what to do with it.
Don’t rush, do research, but bank is currently the safest place for the money to wait
Whilst you decide
Casino baby!! Double it up or play £20 spins
Do what I did when I received a similar amount at uni, smoke it all.
30th September 2022 is the last day you can spend old paper £20 notes! Get it in the bank asap
Put it into the bank by going up to the counter or using a paying in machine inside the building. From there maybe go for a basic saving account, cash ISA or premium bonds and forget about it for now. The beauty of these three is that they’re safe and easy to get money back out of if you come up with a better idea, but not so easy you’ll just piss it away. They’re not the optimal investment pathway but they’re good enough. Alternatively start a help to buy ISA/LISA and chuck it in there if you’re 100% you’ll want a house.
A 19 year old paying in £12k in cash to a bank is going to get flagged, if you pay it in then you want to take some documentation for the source of the cash.
£4K in a LISA this year, same again next tax year.
Another £4K on holidays and festivals, don’t forget to live a little.
Open a lifetime ISA.
You can only put in 4k per year. Put the rest in a fixed savings account with a good interest rate.
Put in the max 4k for the next 3 years. The government will then top this up by 25%, or 1k per year.
So in 3 years, your 12k deposit becomes a 15k deposit, and you can continue adding to it for the same benefits until you’re ready to purchase a home.
If you think you’ll be tempted to access the money early, or for any reason other than a house deposit (or retirement), don’t do this, as there are penalties and you will lose a proportion of your deposits.
First of all, you definitely need to bank it. Also, do you have any documentation that proves it comes from your nans inheritance or was it just a pile of cash from her house?
A 19 year old depositing £12k in cash is going to arouse a lot of suspicion and could be subject to further checks.
Open an S&S LISA, and pay £4000 into it over the next three years. Pay in a little every couple of weeks rather than all at once. By doing that any recession won’t affect the amount.
After three years you’ll have received an additional £3000! Plus your £12,000 might have increased too. So ideally you’ll have £15,000-20,000 to use as a house deposit by the time you’re 23.
Or if you think you’ll be on a good salary once you graduate, it might be worth just spending it all now on experiences. Like they say, you’ll be able to save up more money for a house deposit, but you’ll never be 20 years old and backpacking around Asia for 6 months again.
ISA some of it, hold back some and watch the FTSE it’s down right now, nobody can see the future but I think it’s got further to fall. Look at the last 30 years of recession dips and wait till it hits a bottom and the economic sentiment is in a better mood then buy an index linked tracker. Personally BlackRock iShares is my preferred fund, there are others, Hargreaves Lansdowne has a wide selection of various funds, do your research at what you think would suit you. I am not a financial expert.. investments can go down as well as up blah blah..do your own due diligence.
Put £4000 in a LISA and turn it to £5000 in one simple move.
Go to a building society and open up an ISA, then just leave it there. If you want to look at other ways of investing later, ask around locally for a reputable Financial Advisor – make sure you check out their website, credentials etc.
So nobody gonna question why it’s in cash?
Save some, (half??) but do spend some too. I’d travel, but you might want to buy a musical instrument or other expensive treat or just have nicer accommodation/go out more/ be more comfortable next year at uni.
I would deposit it in your bank first remembering the paperwork from the estate solicitor.
Next keep it simple and put it in an ISA account. It’s safe, tax free and should grow steadily.
Be very wary of anyone offering investments without doing your homework. Many receive massive commissions up front and stick you in poor yielding investments with huge penalties to withdraw. Unless you’re financially astute the sharks will smell the blood in the water.
Also avoid crypto unless you’re willing to risk the lot.
Put it in premium bonds.
​
If you don’t know what to do with it, that’s a good place to store it.
When you want to learn about investing and your options for ISA’s etc then you can do that.
Investing in stocks and crypto is complicated and risky, you could lose it ALL.
So don’t do that unless you really know what you’re doing, and you’re going to make that like your new hobby.
​
Money in Premium Bonds is 12,000 tickets entering you automatically into draws to win money, there’s dozens up prizes up to £1 million.
For free, you don’t lose any money like the lottery and accounts are free.
And you can withdraw your money it any time with 3 days notice.
Government backs all money in there on the rare chance it would get stolen or something.
Pay next month’s leccy bill with it.
19… 12K…
I’d travel to Southeast Asia or/and South America for year
Keep it for a few years until you’ve finished uni, you’ll need it more then and you can treat yourself to something nice like a holiday. Don’t blow it all on rent or anything. Make sure you have a job and a steady income before looking for a place of your own. I’m speaking as a skint 22 year old with a shitty supermarket job in his last year of uni
>I also am unsure of how to put it all in a bank as it’s too much for an atm.
Next to the **cashpoint**, look for a door.
Open this door and walk inside. Talk to someone in a uniform who works there.
Firstly be careful who you tell about the existence of this money. Some people can get jealous…