Best account for getting State Pension paid into

Vike

I am receiving my state pension at but am currently still working. At the moment my pension is being paid into my current account, but it strikes me that I am losing out on interest as I have not touched the pension since receiving it (over a year). Is there a better account that I can have my state pension paid into in order to accumulate interest until I need the funds? Would it just be a case of finding the highest interest-paying account or should I invest it somewhere else?

eskbanker

You could use a different current account - there are some paying interest and others offering switching incentives: http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

And/or you could move the money to a savings account as soon as it arrives: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Robin9

Mine gets paid direct to my TSB account and satisfies the minimum £500 credit requirement.

I do operate 3 other accounts as well.

xylophone

Do you have sufficient earned income to pay this money into a pension and obtain tax relief?

MABLE

Vike wrote: »

I am receiving my state pension at but am currently still working. At the moment my pension is being paid into my current account, but it strikes me that I am losing out on interest as I have not touched the pension since receiving it (over a year). Is there a better account that I can have my state pension paid into in order to accumulate interest until I need the funds? Would it just be a case of finding the highest interest-paying account or should I invest it somewhere else?

As you are still working and you say the pension has not been touched then perhaps another route to explore is delaying on drawing on your state pension.
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Under these rules, for each five weeks you delay your state pension will increase by 1 per cent which works out at a 10.4 per cent increase for a year's delay. ... If you're deferring your state pension, you won't build up any lump sum or extra pension for the days where you're receiving certain state benefits unquote

colsten

MABLE wrote: »

Under these rules, for each five weeks you delay your state pension will increase by 1 per cent which works out at a 10.4 per cent increase for a year's delay. ... If you're deferring your state pension, you won't build up any lump sum or extra pension for the days where you're receiving certain state benefits unquote

Whilst it is still possible to delay the state pension (even if you have already started drawing it), the 10.4% is dim and distant history now. It's more like half that now. https://www.gov.uk/deferring-state-pension/what-you-get

Vike

I'm sorry I haven't checked in for a while. I did look into delaying drawing the pension but worked out that I would need to survive 17 years before breaking even with the extra pension I would earn (currently only 5.2%) as what happens is that you lose the accumulated sum of each year that you defer. ie You get an increased weekly pension of 5.2% but what you have deferred for that year you can't then claim as a lump sum. It's used to fund the extra weekly pension that would be paid. I claimed just before the end of the first year that I was eligible for a state pension and it was all backdated and paid to me as a lump sum, but obviously at the basic weekly rate of state pension.