Advice - Investing lump sum

Texas_Pete

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grumbler

Welcome!

Texas_Pete wrote:

Is there anything to stop me putting money in a normal savings account (around 5%) and transferring some of this money to a regular savings account like the Halifax regular payment account (7% I think)?

There is no anything to stop you doing this. This is a part of 'Savings Fountain' concept described in 'Starting Saving ' article.

I'm not even sure how much more (if any) interest this method would get as obviously the balance of the savings account would be getting reduced as the regular payment account balance was increasing.

For £3000 put into saving account and then gradually moved into regular saving account the effective interest rate will be about simple average of these accounts inerest rates, for example, (5%+7%)/2=6%. For more exact calculation read my post #9 in Regular Savings Accounts discussion .

Just a few related threads:

Best instant access ISAs?
Lump sum - where to put it?
What to do with £50K for a short period