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Best rate for redundancy lump sum that allows frequent withdrawals

Hi,
I am losing my job in a few months. I will receive a 5 figure lump sum which I will need to live off while I find another source of income. After I have used my ISA allowance I want a savings account that will allow me to make monthly transfers to my current account in order to keep my Direct Debits operational. I also want an account operated by a high street branch rather than internet. Naturally, I also want the best interest rate which I know is tricky in the current climate. Any advice will be much appreciated.

Comments

  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    Alliance + Leicester's Online Saver? 3% interest and penalty free withdrawls.
    http://www.moneysavingexpert.com/redir/33f5210e
    I know it's an online account, but you could also open a current account as well, because the current account pays 5% interest.

    Or tesco instant access savings which you can operate at any Tesco. 1.75% interest, EDIT: minimum balance 50,000 so perhaps not so good
    http://www.tescofinance.com/personal/finance/savings/savingsaccounts/instantaccess/index.jsp

    How about Abbey:
    The Abbey* Instant Access Saver account pays 3% AER from £1,000 up to £2 million, including a 1.5% bonus that lasts for twelve months. You can apply online, but the account needs to be operated by phone or in a branch.
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • Thanks for the advice. The Abbey account sounds the best for me although I see that you cannot transfer to non-Abbey accounts which I want to do. Anymore ideas?
    Thanks again
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    I think almost all savings accounts require you to transfer to a current account with the same bank and then out. The savings accounts that don't require this are usually the ones that banks try and fob off onto less money-concious savers - the ones that pay really poor interest rates and aren't even worth a mention.

    Abbey has a current account that pays 5% interest... but no faster payments.
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • Brian_H_2
    Brian_H_2 Posts: 8 Forumite
    Thank you for that advice. I guess I just close down my present current account and open one with Abbey for my Direct Debits and I'll get 5% on that cash while it is in there. Much appreciated NZseries1.
  • Baldur
    Baldur Posts: 6,565 Forumite
    Brian_H wrote: »
    Thank you for that advice. I guess I just close down my present current account and open one with Abbey for my Direct Debits and I'll get 5% on that cash while it is in there. Much appreciated NZseries1.
    NO - you need to transfer your account, see HERE
    If you switch using our Account Transfer Service, and pay in £1,000 or more a month, you will receive 5% AER interest on balances up to £2,500 for the first 12 months.
  • elektra
    elektra Posts: 1,361 Forumite
    Part of the Furniture Combo Breaker Cashback Cashier
    nzseries1 wrote: »
    Alliance + Leicester's Online Saver? 3% interest and penalty free withdrawls.
    http://www.moneysavingexpert.com/redir/33f5210e
    I know it's an online account, but you could also open a current account as well, because the current account pays 5% interest.

    Or tesco instant access savings which you can operate at any Tesco. 1.75% interest, EDIT: minimum balance 50,000 so perhaps not so good
    http://www.tescofinance.com/personal/finance/savings/savingsaccounts/instantaccess/index.jsp

    How about Abbey:
    The Abbey* Instant Access Saver account pays 3% AER from £1,000 up to £2 million, including a 1.5% bonus that lasts for twelve months. You can apply online, but the account needs to be operated by phone or in a branch.

    Abbey instant access saver down to 2.5% today and Alliance and Leicester usually reduce on 3nd of month. About time the 3 - B & B, Abbey and A&L all choose the 1st of the month.
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    Baldur wrote: »
    NO - you need to transfer your account, see HERE

    When I applied, they told me that if I didn't switch to them, I still got 5% on the first £1,000. If i did switch to them, it went up to 5% on the first £2,500.
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • Baldur
    Baldur Posts: 6,565 Forumite
    nzseries1 wrote: »
    When I applied, they told me that if I didn't switch to them, I still got 5% on the first £1,000. If i did switch to them, it went up to 5% on the first £2,500.
    If the OP is thinking of closing the present current account anyway, it makes more sense to transfer it and have 5% on up to £2,500, rather than up to £1,000......... ;)
    .........guess I just close down my present current account and open one with Abbey......
  • Primrose
    Primrose Posts: 10,693 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've been Money Tipped!
    The other alternative would be a one year fixed rate bond which pays monthly interest. You can probably track these down at monehysupermarket.com and look for the Monthly Interest options.
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