Pension payments

Clivegage

Where is a good place (i.e. bank or BS) to put an annual pension sum received from which a monthly amount can be paid into my day to day account. It is inconvenient to carry the whole amount in an everyday account for the rest of the year, and I am looking for somewhere to put it and transfer a monthly amount by standing order. The choice seems big, but someone might have a good answer to this.

bryanb

Don't know any savings accounts that will operate a standing order.

dunstonh

if you want a standing order from the account then it will need to be a current account. However, "most" current accounts pay little or no interest. However, if you dont mind doing manual transfers (online is easy) then there are plenty of savings accounts that can fit your need. The site has a list of current interest rates on savings accounts somewhere.

Freecall

dunstonh wrote: »

"most" current accounts pay little or no interest. ....... there are plenty of savings accounts that can fit your need.

Really!

I would have thought that some of the best rates for income which needs to be accessed monthly would be found in current accounts.

Santander123 for example pays 3% which may not be wonderful in itself but beats most instant access savings accounts.

xylophone

Open a TSB Classic Plus? Or even 2?
http://www.tsb.co.uk/current_accounts/classic_and_classic_plus_accounts.asp

Clivegage

Both these accounts require a regular monthly payment. I, on the other hand, will be paying in an annual lump sum and then asking the account to transfer by standing order a fixed monthly amount OUT of the account into my usual everyday one. Some interest would be nice, but not where I have to pay in monthly - only annually. It is for instance a pain to receive a lump sum of £20,000 in one go into one's daily bank account. If the pension provider cannot drip feed it monthly then it would be nice to have another account do so

xylophone

Have it paid into a building society account like the Yorkshire BS internet saver and just transfer out the required amount into your current account each month?

It also comes with an ATM card.

bigadaj

dunstonh wrote: »

if you want a standing order from the account then it will need to be a current account. However, "most" current accounts pay little or no interest. However, if you dont mind doing manual transfers (online is easy) then there are plenty of savings accounts that can fit your need. The site has a list of current interest rates on savings accounts somewhere.

Not your area I know but the exact opposite of what you suggest is true. Sums up to £50000 ish are now best spread between current accounts at interest rates of between 3-5% whereas savings rate can't get to 2%. There are some conditions and organisation, but a good return for a little effort.

mgdavid

yes 123 needs a monthly deposit. So if you want 1500/mth into yr everyday a/c then setup to move 2k and setup to move 500 back again the following day.

Freecall

Clivegage wrote: »

Both these accounts require a regular monthly payment. I, on the other hand, will be paying in an annual lump sum and then asking the account to transfer by standing order a fixed monthly amount OUT of the account into my usual everyday one. Some interest would be nice, but not where I have to pay in monthly - only annually. It is for instance a pain to receive a lump sum of £20,000 in one go into one's daily bank account. If the pension provider cannot drip feed it monthly then it would be nice to have another account do so

Two standing orders will sort it, then you get exactly what you want.

QED