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The original was posted on /r/ukpersonalfinance by /u/Environmental-End199 on 2023-08-11 10:54:20.

Hello,

I am fortunate enough to be receiving a lump sum of £400,000 (after tax) as my relative has passed away. I am currently renting a flat and haven’t got too much money saved so I always thought buying a house for around 350-375k would be the best option and using the rest to pay off my car (5k left currently).

I’ve given it some thought though and was just wondering if there were any options I should consider with what to do with it, one that I thought of doing was buying a much smaller house for around 200k and then putting the other 200k into a high interest account and leaving it there for X amount of years, my understanding is it would make quite an amount over time and would be a good way of prolonging it.

Aside from my 400k inheritance it is also worth noting I will be receiving a 200k pension also (as well as my pension from Working, currently have a 40 hour a week job so just have a nest pension) meaning I don’t necessarily need to put it aside for retirement.

Perhaps useful information: I’m 24, currently working a £22,000 a year job.

Hopefully I’ve provided enough information, I’d just like to see what recommendations people would have for someone in my position.

Thanks in advance.