Best place for saving a lump sum?

jelly_icecream

Hi everyone,

I am moving soon, and will get a lump sum of about £12,000 to save somewhere. I will need access to the money as I hope to get a car and do some improvements on the new place at some point.

Just some ideas on where/how I can get the best interest rate on this.

Thanks.

Robbieh

Have you read through this forum at all?????? Plenty of threads giving interest rates on bank current accounts!

jelly_icecream

I've had a flick through - issue with current accounts is that there is usually a maximum amount you can have in there and in order to get the rate at some you have to switch, meaning you are unable to have more than one.

xylophone

For simplicity you could open a Santander 123, put your cash back DDS on it, pay in £500 per accounting month.

Or you could open a TSB Plus, (cycle in/out £500 a month), a Lloyds Club (plus any two DDs) and cycle in /out £1500 a month, and a couple of Tesco current accounts - use one to store the monthly interest accruing on the other accounts.

Eco_Miser

jelly_icecream wrote: »

I've had a flick through - issue with current accounts is that there is usually a maximum amount you can have in there and in order to get the rate at some you have to switch, meaning you are unable to have more than one.

I think you flicked too quick. Which current account requires you to switch?
Anyway, having to switch doesn't limit the number of accounts you can have.

xylophone

You don't have to switch. You can keep your existing account. This does not prevent your having other current accounts.

You have £12,000 - as I said in my previous post, for simplicity, cash back on DDS and a reasonable rate of interest you might wish to look at Santander 123.

Or you might open high interest current accounts and cycle money round as required......

enthusiasticsaver

You can get 3-5% on current accounts although you will need to open a few. Nationwide and TSB pay 5% for £4.5k altogether. You could put £5k in Lloyds Club and the rest in Tescos current accounts. Alternatively if you have a partner double that or even triple if you can get sole accounts each and a joint so you could get it all into TSB or Nationwide at 5%.

DanStan

20k in Santander 123, the rest in a help to buy ISA, or basic ISA