Where do i put my lump sum?

heeth

We have just sold a house and have around £17,000 in a current account. £10k of this is for house refurb stuff and the rest is to go towards our wedding next year (this wedding account will grow over the year, house refurb will all be spent within a year) . As we have loads of spending on the cards, i want to split the cash into two accounts so we can keep better tabs on the spending, but i need instant access to them both and can't be bothered having to pay in certain amounts each month that most of the banks demand for current accounts. The amounts are too much for an ISA so I just don't know where to put the money. It seems such a waste to have a large lump sum and not earn good interest on it. Anyone know a good instant access account that can cope with lump sums that won't penalise against withdrawls?

heeth

nicko33

heeth wrote: »

The amounts are too much for an ISA

not if you're quick enough to get 2 opened by April 5.
£3000 each into a 2007-08 cash mini-ISA
then
£3600 each into a 2008-09 cash ISA
will account for £13,200

I'm not up on the latest cash-ISA rates but
Barclays Tax Haven ISA is offering 6.5% with instant access
http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=homefreegroup&value=14424
which is the equivalent of an 8.13% account for basic rate taxpayers