Best account for lump sum?

Trunk_z
Trunk_z Posts: 94 Forumite
in Budgeting & bank accounts
Hi guys,

My partner and I are remortgaging and taking out some of the equity to finish off our house.

This means that we will be receiving a lump sum at some point, we will need access to this account to withdraw or transfer money electronically regularly.

Is there a bank account which would be good for this? Might as well take advantage of any short term interest rates or other special offers?

We aren't looking to change our main bank accounts at this time, just a new one for this lump sum.

Someone had mentioned the Santander 123 account, are there any others we should be looking at?

Thanks,
Chris

Comments

  • xylophone
    xylophone Posts: 44,348 Forumite
    Name Dropper First Anniversary First Post
    How much is the lump sum?
  • teddysmum
    teddysmum Posts: 9,471 Forumite
    First Anniversary Combo Breaker First Post
    Banks paying interest on current accounts do so on limited amounts, so you could either open a number of accounts or put all the money into one and only have interest paid on the limited amount.
  • Trunk_z
    Trunk_z Posts: 94 Forumite
    Thanks for the replies.

    About £30k is how much we are releasing.
  • Trunk_z
    Trunk_z Posts: 94 Forumite
    Current thinking is either the Santander 123 account, splitting it into 2 ISAs (one each), or phoning our current bank and asking for their advice?
  • badger09
    badger09 Posts: 11,201 Forumite
    First Post First Anniversary Name Dropper
    Trunk_z wrote: »
    Current thinking is either the Santander 123 account, splitting it into 2 ISAs (one each), or phoning our current bank and asking for their advice?

    That doesn't sound very lucrative

    If you're prepared to do a bit more work, have a look here

    http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

    Whether or not its worthwhile opening several accounts will depend on how long the £30k will be on deposit;)
  • Trunk_z
    Trunk_z Posts: 94 Forumite
    badger09 wrote: »
    That doesn't sound very lucrative

    If you're prepared to do a bit more work, have a look here

    http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

    Whether or not its worthwhile opening several accounts will depend on how long the £30k will be on deposit;)

    Some of it could be there for 2 years. We are going to be doing up the house with it, so will need regular, easy access.
    Hadn't considered opening up several accounts however, we did have a look at that page, but didn't think about splitting the money up!
  • badger09
    badger09 Posts: 11,201 Forumite
    First Post First Anniversary Name Dropper
    Trunk_z wrote: »
    Some of it could be there for 2 years. We are going to be doing up the house with it, so will need regular, easy access.
    Hadn't considered opening up several accounts however, we did have a look at that page, but didn't think about splitting the money up!

    If some of it is going to be hanging around for up to 2 years, you & your partner should also consider regular savers alongside the higher interest current accounts.

    Nationwide Flexdirect current & regular saver would be an obvious choice, as would TSB Classic Plus current.

    Have a read around the link & the rest of the forum & come back if you have any questions. Many of us are managing 20+ accounts in order to squeeze every penny from our cash;)
  • Trunk_z
    Trunk_z Posts: 94 Forumite
    Oh for real?

    Didn't realise this was a thing!

    Thanks for the help, we will have a hunt around and see what happens.
  • badger09
    badger09 Posts: 11,201 Forumite
    First Post First Anniversary Name Dropper
    Trunk_z wrote: »
    Oh for real?

    Didn't realise this was a thing!

    Thanks for the help, we will have a hunt around and see what happens.

    Most definitely a thing:D

    However, no one knows how long some of the current account deals will last. Santander have already announced drop from 3% to 1.5%, now Lloyds following suit - 4% to 2%:( however, there is still some money to made for a bit of effort.
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