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regular savings from lump sum savings

I have a lump sum in a savings account(2.75%) and am considering saving £250 a month into a regular savings account(Santander) to get extra interest at 5%,using the moneysavings calculator it works out around £120-any thoughts or other ideas?In other words is it worth bothering with?

Comments

  • If you're a basic rate tax payer, I reckon that works out at about £29 extra interest for the year. Only you can decide whether that's worth it to you.

    As an alternative, if you can afford to lock the money away for two or three years, it might be worth looking at fixed rate deals.
    "The trouble with quotations on the Internet is that you never know whether they are genuine" - Charles Dickens
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