Best high interest account for a large lump sum

pizza_lord

Hi I have a large lump sum from a recent house sale and, while I am working out how to re-invest this in income producing equities, I want to leave it in a bank account that pays good interest.

I need to be able to have access to the cash when I need without penalty.

High interest account that I have seen have strange limits like only being able to deposit 300 pounds per month which is not suitable for my situation

Any advice?

TheTracker

Since the value is £1m your only real choice is NS&I which is fully protected. Banks are only protected to £75k. The interest is a derisory 1.1% or so.

mgarl10024

TheTracker wrote: »

Since the value is £1m

Where did you get this from? Other threads?

Edit: Ah. https://forums.moneysavingexpert.com/discussion/5382563

TheTracker

mgarl10024 wrote: »

Where did you get this from? Other threads?

yes the OP started two threads at once

https://forums.moneysavingexpert.com/discussion/5382563

Futuristic

TheTracker wrote: »

Since the value is £1m your only real choice is NS&I which is fully protected. Banks are only protected to £75k. The interest is a derisory 1.1% or so.

OP has FSCS protection of £1m for up to 6 months under the new regulations.

But yes NS&I would be the only reasonable holding account which would earn interest on the whole amount.

Eco_Miser

pizza_lord wrote: »

High interest account that I have seen have strange limits like only being able to deposit 300 pounds per month which is not suitable for my situation

That's not a strange limit at all, as the account is question is intended for regular savings out of income, not for lump sums.
ALL accounts paying reasonable interest at the moment are special promotional rates to attract business to the bank, and so are on limited amounts of money. A single person can open multiple accounts and get 3% AER or more on around £50000, a couple can get nearly three times that. A summary is available at https://forums.moneysavingexpert.com/discussion/5374614

That still leaves most of your million languishing at NS&I rates.

Maximum_Saving

You should split the money and put some in high interest accounts. You could have £2000 in a TSB Classic Account. You could have £20000 in a Santander 123 Account. You could have £2500 in Nationwide Flex Direct Account. You should avoid regular savers as they require a years time. You could see if Tesco Bank offers 3 percent interest. Good luck.

pizza_lord

Maximum_Saving wrote: »

You should split the money and put some in high interest accounts. You could have £2000 in a TSB Classic Account. You could have £20000 in a Santander 123 Account. You could have £2500 in Nationwide Flex Direct Account.

Ok so that takes care of 24,500 pounds. What do I do with the rest of the cash?!

bigadaj

pizza_lord wrote: »

Ok so that takes care of 24,500 pounds. What do I do with the rest of the cash?!

Ns&i as detailed above.

You might have £1million but you don't appear very bright or be able to follow a simple discussion.

Superscrooge

Another way of looking at it is that however you split the money the majority of the cash is only going to be earning approx 1.1% with NS&I so the average interest rate across the whole balance isn't going to be much above this.

If by simplifying things and investing it all with NS&I you are able to prioritise sorting out your income producing equity investments rather than having all the cash languishing at an average interest rate of about 1.5% for several months, your gains from doing this might end up being greater.

Obviously this only works if you speed up sorting out your equity investments