Best place to save large lump sum?

stacyf · 20 September 2016 at 5:58AM

Hi there, I recently got my divorce settlement through and I am looking to purchase a house but there isn't anything within budget suitable on the market at the moment and it's looking pretty slow.

My solicitor is holding the funds but I really need to deposit them into an account of my own whilst house hunting.

I know very little about ISA's and financial things in general-the lump sum is £59k
Also, as far as I know, this should be tax free amount due to it being a divorce settlement???

Any suggestions/advice much appreciated!!

AnotherJoe · 20 September 2016 at 7:32AM

Look in the banking and saving section up above

eltel31 · 20 September 2016 at 1:26PM

Hi. My friend is in a similar situation. She has opened multiple bank accounts that pay up to 5% interest on amounts up to £5000 (Lloyds Club, Nationwide, TSB etc, including Santander 123, but that now isn't so good as the interest rate is going down). Much better interest than ISAs and no tax on interest up to £1000 per year. Look on MSE under Banking and Savings at interest paying bank accounts. Hope this helps.

teddysmum · 20 September 2016 at 7:15PM

eltel31 wrote: »

Hi. My friend is in a similar situation. She has opened multiple bank accounts that pay up to 5% interest on amounts up to £5000 (Lloyds Club, Nationwide, TSB etc, including Santander 123, but that now isn't so good as the interest rate is going down). Much better interest than ISAs and no tax on interest up to £1000 per year. Look on MSE under Banking and Savings at interest paying bank accounts. Hope this helps.

It's worth putting £2500 in a Nationwide current account, now, before they drop the rate from 5% , as the take up rate will be fixed for one year.

Best place to save large lump sum?

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