Best thing to do with a lump sum?

oliviaolivia12345

account no longer being used thanks to bullying from forum members.

Paul_Herring

Depends on how much a "fair amount" is - enough for a savings ladder using fixed rate bonds? http://docs.google.com/View?docID=dwnwdnb_66drzgz6f4&revision=_latest&hgd=1

LucyTheDwarf

Are you a taxpayer and have you used your ISA allowance this year?

oliviaolivia12345

Yes I pay tax each year, I am self-employed. I do not have an ISA.

LucyTheDwarf

Then I think you could do much worse than opening a cash ISA. You can pay in £3600 each tax year, any money withdrawn cannot be reinvested in that tax year (ie you can't deposit £3600, withdraw £1000 and then redeposit the £1000 in that one tax year, total payments in can total no more than £3600).

http://www.money.co.uk/savings-accounts/cash-isas.htm

There's the current table toppers for cash ISAs - I'd advise you to individually look at each account, read all the small print and t&cs to check there's no unpleasant surprises or criteria you don't meet.

For the money above your ISA allowance, perhaps find a nice instant access savings account, and dip into this before touching the ISA. Come April, you could always put whatever was left over into your 2009/10 ISA.

http://www.money.co.uk/savings-accounts/instant-access-savings.htm

McKneff

Good advice from Lucythedwarf. You couldnt do any better than this