Ask Andy #61: Your money questions answered

My regular round-up of your personal finance questions.

I love hearing from you, whether it’s on the blog, social media, YouTube or email. Often you’re asking me questions about your finances, and I’m always glad to help if I have the time.

But I realised that my answers could also be useful to other followers. So I’ll be putting my responses to the best questions into regular articles here on the blog.

Keep reading for some of the questions I’ve been asked, plus the video live from this week with even more!

Watch the latest live Q&A

Every couple of weeks (usually on a Sunday or Tuesday evening at 7pm) you’ll find me live on YouTube and Instagram answering your questions. It’s probably the best place to ask!

Here’s the latest video:

This week’s extra questions

If you’ve asked me a question elsewhere, you might find the answer below!

What do I do with a windfall?

I have been left £90,000 from a family member. Do I put all of it in a 1 year fixed account where it’s safe or stocks and shares?

Anon, via the Facebook community

A few quick thoughts. One, if you put it in a higher paying savings account you will go over your personal savings allowance, and pay tax on the excess interest. So do use your full ISA allowance this year, and again in April to reduce this impact. You can put £50,000 in Premium Bonds too, with the winnings all tax free.

However if you won’t need the money for more than five years then investing could be a good shout (ideally as much in an ISA as you can). Or it might be worth looking at extra pension contributions or overpaying your mortgage. With such a large lump sum I’d probably talk to a financial advisor to see what they think.

Should I move my Help to Buy ISA to a Lifetime ISA?

I have a help-to-buy ISA & a lifetime ISA. both of these are earning very little interest. should I keep the HTB or ditch it, on the assumption that the average house price is more than £250k?

Anon, via the Facebook community

Lifetime ISAs have a property limit of £450,000 around the country, while HTB ISAs increase to that amount in London. Depending on where you live that could be good or bad news. If you think the LISA is a better bet, then you could transfer up to £4,000 from the HTB ISA. Though if you don’t buy then your cash is locked away until retirement or available if you pay a penalty. More here

Andy’s YouTube

Watch new videos every week on the Andy Clever Cash channel, plus a regular live Q&A

Is the paid Monese worth it?

Would you sign up to the paid version of Monese to get the vouchers that they offer? (20% of supermarkets etc.)? Is it worth it or do they still sometimes offer those to all customers?

Anon, via the Facebook community

Sadly the 20% vouchers tend to go very fast (more on the offer here), and there’s no guarantee the offer will even run in any given month. So paying £5.95 a month to access these might be a waste of cash. Personally I’d stick with the free tier.

Where should I put 1p challenge savings?

If I were to do the 1p challenge (£55.67 a month) is a regular saver at 5.25% best or an easy access 2.7%? As reg savers are drip fed I’m not sure if it works out better to do easy access as it’s the same monthly?

Marie, via the Facebook community

A regular saver would likely be the best place as long as it’s offering the highest interest rate. Saying that, the 1p challenge will deliver small amounts each month, so if you can, try to top up how much you put in the regular saver to the monthly limit. More on savings challenges here.

Andy’s podcast

Listen to Cash Chats, Andy’s twice-weekly podcast. Episodes every Tuesday and Friday.

Will my other accounts close if I switch?

If I complete a switch from Nationwide but you have a fixed rate bond + cash isa with them this will be affected once your accont is closed?

Anon, via the Facebook community

It really depends if those accounts require you to have a current account with Nationwide. If so, then yes, you’d lose them. But if not, they’ll carry on regardless. One way around accounts that are linked is to open up an extra current account with Nationwide which will keep you as a customer. The same applies when switching away from other banks too.

How to ask me questions

The best way to get in touch is in the Andy Clever Cash Facebook community

Just post your question any time, or ask me in my live fortnightly Q&A every other Tuesday (which is on Instagram and YouTube).

I can’t promise I’ll be able to answer all questions but I’ll do my best.

If you want to contact me via other channels I tend to look once a week at all the messages, but it can take longer – so you might have to bear with me for a reply.

You can also comment on individual blogposts and videos or ask me questions via these channels:

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