Multiple Bank Accounts Help Needed

Ghretiree

Having just taken voluntary redundancy and retired I need to reorganise my banking. In order to maximise the interest on my redundancy lump sum I need to set up multiple accounts.
I currently have a Club Lloyds account which will need to be fed £1,500 per month from 'somewhere' now that I no longer have any salary being paid in. I have associated Club Lloyds monthly saver accounts.
I have set up a Santander 123 account into which I will deposit the maximum £20,000 and set up direct debits for my utility bills etc. to maximise interest. This account will receive my widow's pension of approx. £600 per month to cover them.
That leaves a sum of approximately £30,000 to deposit in an account from which I can arrange a direct debit of £1,500 per month into the Lloyds Club account in order to keep it going. Obviously I am looking for something that will also earn me interest. I'm not sure I can cope with setting up a series accounts that all feed each other so any suggestions of something relatively simple would be greatly appreciated!

YorkshireBoy

"Maximise the interest" and "relatively simple" won't happen. Pick one or the other.

Maximising interest will mean a 5% FlexDirect account, a 5% Flex regular saver, 5% regular savers with Santander and FD/HSBC/M&S (but they all require cuttent accounts too. Then you could move on to 3 x BoS Vantage accounts (currently 3% but 2% from June), and Tesco for 3% (but loads of hoops to jump through).

The alternative, "relatively simple", solution is the Santander 123 (and their 5% regular saver) and a 0.75% savings account with NS&I. But that will mean your interest is probably only a third of what it could be, with a bit of work.

EachPenny

Ghretiree wrote: »

I'm not sure I can cope with setting up a series accounts that all feed each other so any suggestions of something relatively simple would be greatly appreciated!

Unless you open several more accounts plus regular savings accounts you won't be able to find places to put all your lump sum. Bank of Scotland will let you open three Vantage accounts (which you can manage together online almost as if they were one) that would provide a home for a total of £15,000. But after that you are looking at many small pots of money spread around the different banks.

If you don't want to go with many accounts then you'll have to look at other options - and if you want a decent return on your money then bank savings might not be the right thing for you. Other people will have ideas which might be more suitable.