lump sum

andyclarke

I have a lump sum of just over £5000 which I want to invest to get interest on it tax free.I dont work and so cannot afford paying in a regular amount through a salary.I also will not be adding much to the lump sum with savings.I just want advice on a savings account or isa that will let me put the sum in and just pay interest on it without fees or regular income from a salary?

grumbler

andyclarke wrote: »

I have a lump sum of just over £5000 which I want to invest to get interest on it tax free

Any interest you get is tax free:

• - Most won't pay tax on savings interest

I dont work and so cannot afford paying in a regular amount through a salary.

It doesn't have to be a salary for regular savings.

I also will not be adding much to the lump sum with savings.I just want advice on a savings account or isa that will let me put the sum in and just pay interest on it without fees or regular income from a salary?

Generally, a combination of interest-paying current account(s) with regular saving account(s) can be the best solution (up to 5%), but may require some jumping through hoops:

• 'Bank account' savings
• Regular savings

Without jumping it's ~1% max.

teddysmum

Tesco's online saver seems to be one of the better easy access, with no strings, accounts, paying 1.01% for the first year and is useful should you need to create direct debits from other accounts.

chockydavid1983

You can fit your £5k into 2 Tesco current accounts paying 3%.
Or Nationwide £2.5k 5% for a year
To meet the pay in requirements, simply have another account with any old bank and have a SO into that one and back to Tesco/ Nationwide.

grumbler

chockydavid1983 wrote: »

You can fit your £5k into 2 Tesco current accounts paying 3%.
...
To meet the pay in requirements, simply have another account with any old bank and have a SO into that one and back to Tesco...

Why do you not mention 6 DDs required?