Earning an Income off of a lump sum.

Hope_K

I need some advice.

I set up an online savings account with the HSBC thinking that I could use the interest accrued each month. It appears that I did not read the small print regarding the fact that if I take any money from the account then I lose interest for the whole of the next month. I should have researched I know, but I have had a lot of other personal problems that have made this minor in comparison.

I would appreciate it if someone could advise me on the best place to put my money. So that I could draw on the interest each month to supplement my income.

Kindest Regards


Hope K

ThankYouAndEnjoy!

Hello

Have you tried looking into 'Income Bonds?' - Basically, you 'invest' a lump sum and they pay Interest into your account on a monthly basis which you can then use as you please. 100% secure

Try https://www.nsandi.com - gives you all the information you need to know

It really depends on how much money you have to invest, and the opportunity cost of investing the money elsewhere.

jem16

Icesave will pay monthly interest at 5.7% AER - no strings attached.

However please bear in mind that if you take the interest as monthly income your capital will not grow. Over the years the value of this will diminish as it's not keeping up with inflation.

Depending on the sum involved you would be better with a proper investment that will allow a monthly income of around 5% and something extra on top to allow the capital to grow.

You may be better asking this question on the Savings & Investment forum.

Hope_K

yes sorry I posted in the wrong section.

Thanks for the advise

susieb

Hi
I have an online account with first direct which are part on hsbc, with similar terms to yours, however I set it up so the interest from this goes into my current account, that way you can use it with out affecting the main savings account. Hope that makes sense, you may be able to call them and get them to do this for you.