Pension Lump Sum - Best options

kassy64

coyrls said:

kassy64 said:

I'Albermarle said:

Think first, should you actually take the lump sum? Normally there is an option not to take it and have a higher annual pension instead. Sometimes you can do something inbetween, like take a smaller lump sum.
I think most people do take it ( as its there) but it is not always the best decision. It depends to a large extent on your personal situation.

As above you seem a bit confused between 
Savings - safe but paying low amounts of interest, normally not enough to keep up with inflation, so in real terms slowly going down in value.
Investments - some risk but with the possibility of higher returns.

If you are likely to need the money within 5 years, then saving is better. If the time scale is 7 years or more then investing would normally be recommended, for some of it anyway.

I was just hoping for some bank/building society recommendations for great savings rates that others are using.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#types

Thankyou !

Gatser

Charter are offering 2.83% for 1 year  and 3.12% for 2 years
I look at the 2 year account as 2.83% in year one then 3.5% year two.
This may tempt you to consider the 2 year account (unless you feel that interest rates will
be above 3.5% in 12 months time)  just a thought...

kassy64

Gatser said:

Charter are offering 2.83% for 1 year  and 3.12% for 2 years
I look at the 2 year account as 2.83% in year one then 3.5% year two.
This may tempt you to consider the 2 year account (unless you feel that interest rates will
be above 3.5% in 12 months time)  just a thought...

Thanks Gatser, yes they are good rates probably wouldnt go beyond 1 year in case rates go through the roof. My only concern with these 'online' only accounts is trusting the banking system and sending large sums through the system. Silly question probably but is there a safer way of depositing large sums between banks, im just a bit paranoid about the £85k going missing.

Pompeydave1967

Hi Kassy
i always open up fixed a/c’s with smaller amounts then gradually over a few days deposit larger amounts. Never had any issues - it’s all covered up to £85 k anyway. You usually get a ‘deposit window’ where you can transfer funds around a couple of weeks . Saying that when rates were low last year I opened an ATOM 1 yr fixed in sept @ 1.5% (good at the time) and had 6 months to deposit. I have that finishing in 5 weeks time and prob agree with others another 1 yr fixed is the way to go but I am tempted by 2 years if around 3.2 / 3.3 then.
And I’m prob in the minority here but what IF rates drop again in 12-18 months ? Ummm 🤔 

Albermarle

kassy64 said:

Gatser said:

Charter are offering 2.83% for 1 year  and 3.12% for 2 years
I look at the 2 year account as 2.83% in year one then 3.5% year two.
This may tempt you to consider the 2 year account (unless you feel that interest rates will
be above 3.5% in 12 months time)  just a thought...

Thanks Gatser, yes they are good rates probably wouldnt go beyond 1 year in case rates go through the roof. My only concern with these 'online' only accounts is trusting the banking system and sending large sums through the system. Silly question probably but is there a safer way of depositing large sums between banks, im just a bit paranoid about the £85k going missing.

You can send a test amount first, if it makes you feel more comfortable.

kassy64

Yes good advice from Pompeydave1967 and Albermarie.
I had been thinking of doing something like this but was unsure if there was a deposit window - but sounds like there is many thanks.

Albermarle

Typically for a fixed rate savings account, you have 10 to 14 days from opening it to deposit funds.
So you could open the account with £100 and when it all goes through, add the rest.

Smaller banks that you have probably never heard of offer the best rates, whilst rates from the high st banks are generally very poor, with building societies somewhere in the middle ( as big generalisation)

If the bank is mentioned in the link already sent to you , or in the link below, they are all covered by the £85K compensation limit.
Compare The Best UK Savings Accounts | moneyfacts.co.uk

You may come across savings accounts that are offered via a third party, such as Flagstone or Raisin, although in my mind it seems easier just to deal with the banks directly.

Daliah

kassy64 said:

My only concern with these 'online' only accounts is trusting the banking system and sending large sums through the system. Silly question probably but is there a safer way of depositing large sums between banks, im just a bit paranoid about the £85k going missing.

Most banks won't let you send more than £20k - £25k in one go, and some not even more in a day, unless you pay for a CHAPS transfer. 

Albermarle

Daliah said:

kassy64 said:

My only concern with these 'online' only accounts is trusting the banking system and sending large sums through the system. Silly question probably but is there a safer way of depositing large sums between banks, im just a bit paranoid about the £85k going missing.

Most banks won't let you send more than £20k - £25k in one go, and some not even more in a day, unless you pay for a CHAPS transfer. 

Yes that is a good point and if you try and transfer £25K to a less than well known savings provider ( even though they are legit) you may find it blocked by your banks anti fraud dept and you will have to talk to them. On the other hand it might just go straight through. It can be a bit unpredictable.

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