Spending money

Premium bonds don't give a very good return on your investment - prizes are few and far between if you have small amount in bonds, even if you have maximum holdings you don't get much - and £25 is now a common 'prize'

Use it do your house up and maybe treat your family to a nice day out

It all depends how much you will have in the bank once the work is done. If it is a penny less than £20,000, keep it.

As soon as a house is done up, it will start deteriorating, in a few years, you may need to redecorate, replace the boiler, buy a new fridge. You may need a buggy, or a slope to make the house accessible or a stair lift.

Only 1 person in 10 goes into care, and that amount again need care in the home. Looking around I have family and friends who have gone into care and some have had carers, but most have stayed successfully living independently in their own homes, possible with a fortnightly cleaner or gardener before dying from an acute illness in less than a year, or even overnight.

So make your will assuming that you will live in your 'little house' until the end and be able to bequeath to your children their share of the proceeds of selling it.

I am another fan of Premium Bonds. Interest rates are so low at the moment. You can get your money back very quickly.

PS: I don't think Premium Bonds are a good investment.

I have had some since 1973 and they have yielded nothing.
If I sell them, I get back only what I paid for them.

A Term Deposit at the bank is better value.

I'm a skinflint too and have had to be, bringing up two children virtually on my own (my husband was sick) and I could not bear to blow £5,000 on anything, not even my family or house (not that I own a house).

I'd call £1,000 'mad money' and take everyone out for a lovely meal but I certainly wouldn't tell a single soul that I had another £4,000 in the bank.

Then I'd take time to think carefully how to do the house up in a budget way, after all, if someone else is going to buy it eventually, they may well tear out and renew anything I'd done to it.
So it would look smart and clean but not luxurious.

I'd look for a group who are fundraising to do things such as smartening up the garden or a little painting - for a generous sum.

I say this because a registered painter here would charge £5,000+ to do a complete 'in and outside' job and a lot of groups are only too happy to help if they are fund-raising.

Take your time deciding and don't forget to spend just a wee bit on yourself - just because you deserve it.

5% interest ? May I know which Bank, Pink?

I have had over £5,000 in PB for 5 years and never won a penny. I have £5,000 in current account and get 5% interest about £6.50 every month.

Thankyou, everyone, for your words of wisdom.
I thought I should give away my windfall because I have enough for the house renovations since I sold my garden.
None of you said I should share my £5000 round the family so I think I'll hang onto it for a rainy day. It’ll be safe in Premium Bonds.

I think it’s time to spend it on what YOU want. House/once ina lifetime holiday/regular treats for yourself and others. By all means take the relatives out foraslap up meal - or do it on a regular basis if that’s what makes you happy. Time to look after yourself.

It is nice to have a lovely home. But just remember we're only here once. So enjoy your unexpected windfall. Treat yourself to make up for all the times when you've had to count the pennies.

I would take a punt on Premium Bonds too.

You never know. At least the return will probably not be less than in a cash ISA and could be more!

Investment returns at the moment are total rubbish. Even ISAs are rubbish.
What I’d do?
Finish your house and treat yourself to a few small extravagances. Put a little aside for next Christmas to make that expensive time a little easier.
Put the rest into Premium Bonds. You will not lose your initial investment and could win something each month, including a chance at a million.
Even if you win nothing, the amount of interest lost will be negligible. If you find you need some extra cash, you can easily withdraw some any time you want to.
You can download the National Savings App and check your results each month - it’s quite good fun checking. Certainly more exciting than waiting for your few pounds interest on an ISA or savings account.

Do up the house, you deserve it and then treat yourself to something you have always wanted. Enjoy it.

Have a special family meal out and then put in a stocks and shares ISA. No tax and the interest is good if left a few years.

I'd d keep it until the work is completed. Then treat yourself for once, to some lovely slightly more luxurious extras for your home, things you will love and will give you pleasure. Beautiful throws/cushions/paintings etc. Any left, treat the family to a special meal.

Don't give it away lovey

I agree with Fernbergien. I have most of my savings in premium bonds. Interest rates are so low everywhere else if you want instant access rather than tying your money up for a number of years. There is also the entertainment value each month to seeing if you have a win! In the financial circumstances you describe, I would definitely keep it as savings for yourself. Your relatives can inherit your (less scruffy) little house when you pop your clogs. In the meantime, it will be reassuring to know you have some money put away if you need anything. A little holiday for instance?

another one recommending premium bonds...hubby put in £8,000 and has a win of £25 most months -2x £25 a few times. It's way more than if he had put into an Isa or savings account... and it's so exciting when we get an email saying we have had a win!

Talking of inflation, frugality and the like.....Since the year 2000, I have been receiving a measly couple of hundred alimony payments from my ex. Inflation was not taken into consideration during the settlements (my solicitor's fault, I wasn't thinking straight).
Yes, I can go back to court, but I'm afraid my frugality will turn round and bite me in the xxx. He and his present wife go on expensive cruises etc and blow all their money. Since the divorce, he has retired, so I might come a cropper if I go back for more. I never worked, so no pension. However, I mustn't complain, as there may be divorcees here worse off than me.

I’d say Premium Bonds. The smallest win easily outstrips measly ISA interest. The only risk is that of inflation - so although your money is safe it buys progressively less.

I agree Breeze, the sun brings out the comedienne in me. Did you watch the documentary on Victoria Wood ? What a great talent....and sooooooooo funny .

Sorry pippa. It's just so difficult not to feel playful on a glorious day like this

Do up your house,put some savings away? Treat the family, any then yourself.

Thought she had sprouted and bore fruit ????

Tangerine ?
Pippa had fruit on her mind......watermeadow? watermelon? Tangerine? What's in a name ?