Where there's a will
Question
I've inherited a bit of money (it's not much but it's a nice chunk). Some people have told me to put it in an ISA while others have just told me to put it in a savings account. I'm totally confused; can you tell me the difference?
Answer
Unfortunately, we are unable to give advice about where to put your money as doing this is governed by the Financial Services Authority (FSA) and we're not licensed to do this. If you want advice about your inheritance and where you can invest it, you may want to talk to an independent financial advisor (IFA).
ISA stands for Individual Savings Account; this is a tax-free method of saving money. There are various kinds of ISAs and there are restrictions on the amount you can save.
A savings account is what it says, but there are thousands of different types operated by hundreds of different companies. The interest they pay varies and depends on wide range of factors, such as how long you are investing for, the notice period on withdrawals, etc.
You can also find out more about ISAs and savings accounts in the financial sections of the newspapers, they often give lists of the best ISAs and savings accounts. There are also various comparison services, such as Defaqto.com and Moneyfacts.co.uk that can help you choose the right account.
Updated: 16/03/2010
Question answered by CAB
