have i done the right thing

conniemay

after downsizing my property, i have a lump sum to live on, no extra cash coming in.
I have put it into nationwide e savings which is internet banking only. at 5.8 per cent.
the intersest is paid yearly and i have 9 months to go. but am regularly drawing on the capital to live.
the interst is calculated daily.
is this the right thing to have done.
and if i change the account, will i lose the last 3 months interest.
can anyone help.

merlinthehappypig

5.8% isn't the best rate around by any means, but neither is it the worst.

As far as other investments are concerned it depends to an extent how much money you have and how much you need access to. Without more details it's impossible to say what other options might be worth considering. I'm guessing that at some stage the money will run out if you have no other income and are drawing on the capital. If I was in this situation I think I would take independent financial advice to check that I was making the most of what I had, especially if it's all I had got.

As far as interest is concerned it's calculated daily even though it's only paid once a year so you won't have any problems moving your money if you want to. You won't lose out.

If you close the account you will get the interest immediately together with your capital. If you leave it open with a few pounds in you will get the interest you have already earned in nine months time or whenever it is usually paid.

notis7

conniemay wrote: »

after downsizing my property, i have a lump sum to live on, no extra cash coming in.
I have put it into nationwide e savings which is internet banking only. at 5.8 per cent.
the intersest is paid yearly and i have 9 months to go. but am regularly drawing on the capital to live.
the interst is calculated daily.
is this the right thing to have done.
and if i change the account, will i lose the last 3 months interest.
can anyone help.

I know you wont like the idea of this but hear me out - A notice account. I have this and it serves me well.

The Halifax have an account which is known as Extra Income Saver - This account pays monthly interest to a nominated account (your bank account) - This way you know exactly how much you have. The rate currently is 5.75% - but it allows you to pace yourself, it is also a passbook account which is one of the highest I have seen on the high street- I don't suggest you put all your money in there - but certainly the bulk of it and leave a couple of thousand in an instant access account (max 5k - thats what i have done) for the unpredictable...I think it is all about organising yourself...thats my view....you only have a certain amount now to spend and you have to make do....this gives you peace of mind at a solid rate with a good provider

Steve_xx

What about an ISA? Do you have one for this year?

Why not put some of it in an ICICI Bank fixed term account paying 6.85% interest?

jamesd

How much is the amount, roughly? Are you willing to accept the risk of some of it dropping by 10% in value to get a higher income and leaving it invested until that 10% is recovered, perhaps a few years later? How long will you have this as your only income? How much monthly income do you need as a bare minimum, and as a desirable higher amount?

agal

Nationwide's e-Savings currently pays 5.55% not 5.8%