Paying in a large cheque...

[d000hg]

I've finally received inheritance from my late grandfather today in the form of a (low-ish) 6-figure cheque.

1)I've never had a single amount of money so large, certainly not as a cheque and I wonder if I should do anything other than just go pay it in as I would normally? It is larger than the limit guaranteed by the government (£100k?) which makes me somewhat nervous and think I should immediately split it between multiple accounts with different banks, which I don't currently have; also isn't there typically a limit on what you can transfer each day?

I figure someone here must have had the same situation from inheritance, selling a mortgage-free property, etc. What is the right way to approach it?

2)And that's before even thinking about the best place to put such an amount as to try and maximise what little interest I might generate from it. It's quite likely we would want to spend this within the next few months buying a house so I really need to hold it somewhere in the short term where I can access it.
I suppose I can start by maxing out mine and my wife's ISA limits? Or I could just pay off our mortgage (no penalty clauses) on the assumption I'd be selling this house when we move, but that loses me some flexibility.

[MrMarkyMark]

70K guaranteed per banking group, its just changed from £80K.

I believe that you would just pay it in as normal, but get a signed receipt by doing it over the counter, just in case.

[MarillionFan]

I've finally received inheritance from my late grandfather today in the form of a (low-ish) 6-figure cheque.

1)I've never had a single amount of money so large, certainly not as a cheque and I wonder if I should do anything other than just go pay it in as I would normally? It is larger than the limit guaranteed by the government (£100k?) which makes me somewhat nervous and think I should immediately split it between multiple accounts with different banks, which I don't currently have; also isn't there typically a limit on what you can transfer each day?

I figure someone here must have had the same situation from inheritance, selling a mortgage-free property, etc. What is the right way to approach it?

Each quarter at clientco gave me one of those. You just pay it in as normal. I don't think you need to panic about the Financial limit on the bank at the moment, so I wouldn't start running around everywhere on that basis.

2)And that's before even thinking about the best place to put such an amount as to try and maximise what little interest I might generate from it. It's quite likely we would want to spend this within the next few months buying a house so I really need to hold it somewhere in the short term where I can access it.
I suppose I can start by maxing out mine and my wife's ISA limits? Or I could just pay off our mortgage (no penalty clauses) on the assumption I'd be selling this house when we move, but that loses me some flexibility.

Interest rates have just taken a kicking. I have around £400k cash in different places. As I have an offset mortgage, that offset is now just 0.74% P/A, so I've been having to spread the cash around as opposed to paying off the mortgage. This is because you should always pay off your highest interest rates first. If you can get more in interest after tax, then you would get by paying off your mortgage, then logically this is the approach.

Santander is about to drop it's rate from 3% to 1.5% on there 123 accounts. Both you and your wife could have an account so that would be £40k you could put in. Also utilize the Halifax Savings Accounts for kids, they pay 3% with a limit of 20k each, and I've maxed those out. Zopa is a good one if you don't want the money.

Cash Isa rates are crap. Otherwise it's all pretty fecked at the moment.

[d000hg]

You mean they won't even usher me in to the secret lounge and ply me with tea and cucumber sandwiches as a thankyou for letting them hold my money

[MrMarkyMark]

You mean they won't even usher me in to the secret lounge and ply me with tea and cucumber sandwiches as a thankyou for letting them hold my money

No, they will pull you aside and try and help you spend it on extra banking services.

[d000hg]

Other than making it harder to get the money as cash, paying off the mortgage or a large chunk of it probably is the best option in terms of 'return'; even with a fairly good rate I guess it's 1-2% (haven't checked since the BOE reduced rates) and I'm unlikely to find anything paying that much that doesn't lock the cash away longer term.

Ta MF.

[SimonMac]

On a serious note you will get asked where the money has come from, I can't remember what the limit is for anti-money laundering rules but I had the questions asked when I put in £20k.

Is the money coming from a solicitor, can they not do a bank transfer on your behalf?

[SimonMac]

You mean they won't even usher me in to the secret lounge and ply me with tea and cucumber sandwiches as a thankyou for letting them hold my money

Its going to start costing them to hold your money, you are not doing them any favours

[The_Equalizer]

I presume if you have such a sum ie. £70K plus in NS&I products then the £70K limit doesn't apply given it's the government?

[MarillionFan]

I presume if you have such a sum ie. £70K plus in NS&I products then the £70K limit doesn't apply given it's the government?

Good idea. He could always stick the lot into Premium Bonds. That way any winnings are tax free, plus he has access to the cash if he needs it at short notice. Limit 50k per person.