Bank account help

ameranth

Hi. I'm just about to take a £19, 000 lump sum from my pension (early). I need to use up to £300 per month of it to top up my monthly income. Obviously I won't be able to put any money into the new account. What is the best option for me to be able to do this, please. 

DE_612183

Where does your current monthly income go?

I'd set up a savings account and then pay the £19k in there - you can then transfer £300 a month from the savings to the other account - just check to make sure there are no penalties for taking money out of the savings.

eskbanker

ameranth said:

Hi. I'm just about to take a £19, 000 lump sum from my pension (early). I need to use up to £300 per month of it to top up my monthly income. Obviously I won't be able to put any money into the new account. What is the best option for me to be able to do this, please. 

I must be missing something, why is no further funding 'obvious' (to readers of the post)?

ameranth

Because I need to use £300 per month of my £19000 to top up my monthly income so I can't afford to put more money into my £19000 pot. Hope that makes sense. 

jimjames

ameranth said:

Because I need to use £300 per month of my £19000 to top up my monthly income so I can't afford to put more money into my £19000 pot. Hope that makes sense. 

I still don't understand. Why can't the money go into a savings account if it's removed from pension?

born_again

ameranth said:

Because I need to use £300 per month of my £19000 to top up my monthly income so I can't afford to put more money into my £19000 pot. Hope that makes sense. 

1st answer given is the way forward.

So you just need a easy access saver. 

newatc

ameranth said:

Hi. I'm just about to take a £19, 000 lump sum from my pension (early). I need to use up to £300 per month of it to top up my monthly income. Obviously I won't be able to put any money into the new account. What is the best option for me to be able to do this, please. 

Presumably this £19k is the tax free sum, otherwise you need to cater for the tax implications.

molerat

What type of pension ?

Why are you taking a £19K lump sum early ?

Is it not possible to take £300 per month ?

km1500

as I understand it you have 19,000 pounds and want to take 300 pounds a month from that sum. 

that's being so I would put 3600 to a instant access savings account and the rest into a one-year fixed term saving account

at the end of 12 months, repeat

Bigwheels1111

Chip have an easy access isa at 5.1%.
As chip uses open banking you get instant funding and withdrawals.
Put 19k in, the night before withdraw £300 to fund your needs.
Job done and good tax free interest rate.
I need 3k a month from my easy access to fund 12 regular savers.
Is very easy to do.