Where is the safest place to put inheritance money in the UK?

FSCS-protected savings accounts (up to £85,000 per person per banking licence) and NS&I products (100% backed by HM Treasury) are the safest UK options for cash.

How much money is protected in a UK bank account?

The Financial Services Compensation Scheme protects up to £85,000 per person per banking licence. Spreading money across providers — or using NS&I — increases overall protection.

Is NS&I safer than a bank?

NS&I is 100% backed by HM Treasury, with no upper protection limit. This makes it the safest UK home for very large cash sums, though interest rates may be lower than the best-buy banks.

What if I have more than £85,000 to deposit?

Split funds across multiple banking groups (each with their own FSCS licence), use NS&I, or use a cash-savings platform like Hargreaves Lansdown Active Savings or Raisin to spread protection automatically.

Are Premium Bonds a good place for inheritance money?

Premium Bonds are 100% capital-secure and any prizes are tax-free, but returns are uncertain. They suit large balances where capital safety matters more than guaranteed interest.

Should I keep inheritance money in my current account?

Only briefly. Current accounts typically pay little interest and may exceed FSCS limits when combined with savings at the same bank. Move large balances to a protected savings account quickly.

Where To Put Inheritance Money Safely UK

Reviewed for accuracy and UK relevance by the Inheritance Money Advice editorial team· Last reviewed May 2026

FSCS-protected savings accounts

The Financial Services Compensation Scheme protects up to £85,000 per person per banking licence. For sums above this, spread the money across separate banking groups.

NS&I — backed by HM Treasury

NS&I products (Premium Bonds, Income Bonds, Direct Saver) carry 100% government backing with no upper limit. This is the safest UK home for very large cash holdings, though rates may be modest.

Have more than £85,000 to keep safe?

Our free planner suggests how to structure larger UK balances for full protection — no obligation.

See what people in your situation usually do

Cash ISAs

Cash ISAs offer tax-free interest within the £20,000 annual ISA allowance. They are FSCS-protected like normal savings.

Savings platforms

Platforms such as Hargreaves Lansdown Active Savings and Raisin let you spread money across multiple FSCS-protected providers from one login — useful for larger sums.

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What to avoid initially

Concentrating large sums in one bank
Locking money into long fixed-term bonds before you have a plan
Investing in volatile assets before you've decided on time horizon

Published January 2025 · Last reviewed May 2026

Where To Put Inheritance Money Safely In The UK