Almost half (46%) of people who have received or are expecting an inheritance leave it in a current or savings account, a study from Hargreaves Lansdown has found.

The findings suggested that men are also three times more likely to leave an inheritance in their current account at 12%, compared to 4% of women, who were found to be slightly more likely to put the money in a savings account instead.

Figures, based on a survey of 2,000 people by Opinium for Hargreaves Lansdown in April, suggested that younger beneficiaries are more likely to leave an inheritance in the bank or building society, with 52% of 18 to 34 year olds likely compared to 41% of 35 to 54 year olds.

Hargreaves Lansdown personal finance analyst, Sarah Coles, said: “When money and emotions collide, you can end up making all sorts of strange decisions, and there are few things in life as emotional as bereavement.

“We might be perfectly logical about money in every other part of life, but when it comes to an inheritance, we’re so worried about making a mistake with a legacy, that there’s a real risk we end up squandering it through excessive caution.”

Coles also stated that half of people who inherit end up leaving at least some of the money in cash, and that 8% of those who have received or are expecting an inheritance leave the money in their current account, while 38% put it in a savings account.

She continued: “There are some perfectly reasonable reasons for doing this. If you’re still reeling from the bereavement and aren’t ready to make a decision, temporarily putting the money in a savings account with a decent interest rate can be a shrewd move.

“Alternatively, if you have a specific plan to spend it within the next five years, or are saving for a specific short-term goal, cash may be the best option.

“This could explain why younger beneficiaries are more likely to leave an inheritance in a current account or savings account: 73% of those who have been left money put it in the bank. Younger people are more likely to have expensive short-term savings goals like buying a property, so it may well be the right place for the money.”

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