Best account for inheritance in the UK (2025 guide)

Just received an inheritance and are wondering what to do with it? You’ve come to the right place.

In this guide, we’ll explore the best accounts for inheritance in the UK, from high-yield savings accounts to cash ISAS with tax-free interest. Both are a great way to increase the value of your money while you decide your next move.

If you’re receiving an inheritance from abroad, a Wise account might be a good alternative option. Wise is an electronic money services provider and a non-bank alternative, where you can hold up to 40+ currencies in one account and securely send large amount transfers with no hidden fees. Discover how Wise can help you manage your inheritance today.

Learn more about the Wise account 💰

What to consider when choosing a bank account for inheritance

Not sure where to begin? If you need help narrowing down the best account for your inheritance, consider the following factors:

• Interest rates
• Withdrawal penalties
• Ease of access – is the account online only or can you visit a branch in person?
• Fees and charges
• Customer service
• Bereavement support, i.e. specialist bereavement teams

Best types of bank accounts for managing an inheritance

Putting your money in a high-yield account can help you earn interest while you figure out your next steps. This could take the form of a savings account or an ISA.

For many UK banks, there is no annual limit on how much you can put into a savings account, which means it’s possible to deposit the total amount of your inheritance. Depending on your circumstances, you may have to pay tax on your interest, however, your Personal Savings Allowance (PSA) means you can earn a certain amount of interest tax-free.¹

Easy-access accounts also offer flexibility in managing your money if you don’t want to lock it away for a set period.

An ISA, on the other hand, offers tax-free interest on your inheritance subject to the annual ISA allowance of £20,000. This means you can put up to £20,000 across one or more ISAs each year. With a fixed-term ISA, you can also benefit from higher fixed interest rates – great if you don’t need your inheritance immediately.

Best UK banks offering accounts for inherited money

We’ve rounded up some of the best accounts for inheritance below, including their interest rates and banking benefits.

Moneybox

With a Moneybox Cash ISA, you can earn 5.25%* AER (variable) on your money, up to the annual ISA allowance. This is comprised of a 4.2% AER variable interest plus a three-month 1.05% AER fixed rate bonus.²

Pros

• Up to 3 withdrawals every 12 months without impacting your interest rate.³
• Easy-to-use mobile app with high Trustpilot ratings.
• Live chat customer support.

Cons

• Minimum account balance of £500.
• A lower interest rate of 0.75% AER (variable) applies if you fall below the minimum balance or you withdraw more than three times over 12 months.⁴
• Bonus offer for new Moneybox cash ISA customers only, though you can get it if you've had other Moneybox accounts.

Post Office

With both the Post Office online saver account and their easy-access online ISA, you can earn 4.4% interest on your money for the first 12 months which can help you boost your savings.

Online saver account

Pros:

• Minimum deposit of £1.
• Interest is paid every month or once a year.
• Unlimited no-notice withdrawals without penalty.⁵

Cons:

• Interest drops to 1.25% Gross/AER after 12 months.
• Online account only.
• No access to money for the first 8 calendar days after opening an account.⁶

Easy access online ISA

Pros:

• £100 minimum amount to open an account.
• No restrictions on the number of withdrawals.⁷
• Can spread savings across other Post Office ISA accounts like their fixed rate offerings.

Cons:

• After 12 months, interest drops to 1.25% Gross/AER.
• Online account only.
• Subject to annual ISA allowance of £20,000.

Skipton Building Society

Skipton’s Cash ISA Base Rate Tracker account has an annual interest of 4.25%. Since you can manage your account online and at a Skipton Building Society branch, this could be a good option for those who want to oversee their inheritance in person.

Pros:

• The minimum opening and operating balance for the account is £1.
• Multiple ways to manage your account, including online, in the mobile app, by post, in branch and via telephone.
• Flexible ISA allows you to withdraw money and return it in the same tax year without reducing the current year's ISA allowance.

Cons:

• Variable interest rate which can go up or down dependent on the Bank of England Base Rate.
• At the end of the 12-month term, the account will automatically transfer into a new easy-access Cash ISA (usually with lower interest) if you don’t contact them beforehand.⁹
• Subject to annual ISA allowance of £20,000.

Chase

New account holders of a Chase easy-access saving account get a fixed 1.75% AER boost for 6 months on top of the bank’s standard saver variable rate. Since the current interest rate is 3%, this means you can get 4.75% AER (variable) interest for the first 6 months of your new savings account.¹⁰

Pros:

• No minimum balance to open an account.^¹¹
• Interest is paid monthly.
• Hold up to 10 Chase saver accounts at any time.

Cons:

• Need a current account with Chase.
• Digital bank only.
• Can only get the boosted savings rate on one of your Chase saver accounts.

How to open and manage a bank account for your inheritance

The process of opening an account for your inheritance in the UK differs depending on who you bank with.

For example, to open a Chase easy-access savings account, you first need to have a free current account with them. However, you can link any of your UK bank or Building Society accounts to the Post Office online saver account.¹²

To open most ISA accounts, you will need to provide your national insurance number and an email address for correspondence. You can also request transfers from other ISAs from the same bank or other banking providers.

Tax considerations for inherited money in bank accounts

It’s worth also familiarising yourself with Inheritance Tax (IHT) rules when deciding what to do with your new sum of money. IHT is the tax on the estate (the property, money and possessions) of the person who has died.

If the value of the estate is below the £325,000 threshold, or the deceased has left everything above the threshold to their spouse, civil partner, a charity or a community amateur sports club, there is normally no Inheritance Tax to pay.¹³

A personal representative for the deceased’s estate will typically pay any Inheritance Tax due before giving you the inheritance.

If someone leaves you a gift (for example, a house, cash or other assets) in the seven years before they die, you may have to pay taxes on it. If this is the case, HMRC will contact you directly.

If you’re receiving inheritance outside the UK, the rules of inheritance tax will likely differ. You can find more information below:

• Inheritance tax in France
• Inheritance tax in Spain
• Inheritance tax in Italy
• Inheritance tax in Portugal
• Inheritance tax in New Zealand

Mistakes to avoid when choosing a bank account for inheritance

Make sure to dodge the following mistakes when picking the best account for your inheritance.

• Not considering interest rates.
• Locking the money away when you might need it soon…
• … alternatively, making it too accessible for easy spending.
• Not taking advantage of new customer boost rates.
• Not understanding the tax implications of the money.
• Ignoring account fees.
• Not prioritising accessibility and how you will access the money.
• Emotional spending or making impulsive purchases while grieving.
• Not considering long-term goals such as retirement or education.

Choose Wise for receiving international inheritance payments

Working out what to do with your inheritance can be tricky, especially during the grieving process of losing a loved one. If you’re receiving an inheritance in the UK, opening a high-yield savings account or a cash ISA with tax-free interest can help you get more value for your sum while you’re figuring out your next steps.

When coming into inheritance overseas, a multi-currency account like Wise can help you manage your funds in up to 40+ currencies including USD, GBP and EUR. Benefit from low, transparent fees* for international payments and currency conversion using the mid-market exchange rate with no markup added.

Find out how Wise can make managing your inheritance easier today.

---

Sources used:

1. GOV.UK - interest on savings accounts
2. Moneybox - cash ISA rates
3. Moneybox - yearly withdrawals
4. Moneybox - lower interest rates for withdrawals and low account balance
5. Post Office - online saver account free withdrawals
6. Post Office - initial no access to money
7. Post Office - withdrawals on ISA account
8. Skipton - variable rate of ISA
9. Skipton - automatic changing of ISA account
10. Chase - savings rate
11. Chase - minimum balance
12. Post Office - linking accounts
13. GOV.UK - inheritance tax

Sources last checked on date: 19-March-2025