What to do with lump sum?

O

Omega

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I know that this question (or variations of it) must have been asked before but any suggestions would be appreciated. I want to invest a lump sum so that I can maximize interest, while using some of the money to live on for the next few years. The regular savings options seem to have the best interest rates but are subject to drip-feeding. Is there any type of savings account, giving reasonable interest, from which these regular accounts can be fed - either via standing order, online access, etc.? One can obviously use a current account for this but interest rates, if any, are very small. I was also thinking of putting some into Investec's one year 6.5% AER account and maybe Anglo's one year a/c as well. Many Thanks for any comments.....:)
 
I don't think the banks want to encourage that sort of thing.

It would be great if one of them has broken from the pack to allow it.
 
Omega said:
I know that this question (or variations of it) must have been asked before but any suggestions would be appreciated. I want to invest a lump sum so that I can maximize interest, while using some of the money to live on for the next few years. The regular savings options seem to have the best interest rates but are subject to drip-feeding. Is there any type of savings account, giving reasonable interest, from which these regular accounts can be fed - either via standing order, online access, etc.? One can obviously use a current account for this but interest rates, if any, are very small. I was also thinking of putting some into Investec's one year 6.5% AER account and maybe Anglo's one year a/c as well. Many Thanks for any comments.....:)
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Not 100% certain what you are after here ..

If you want to maximise bank interest go to Investec and lock at 6.5% and open a Anglo on demand account at 5.5%.

If you want to want online access and easy top up of term deposits then go for Northern Rock at 5.0 % or Halifax locked at 5.6% who both have good online services and can easily be toped up.
 
Basically, I want a high-yielding deposit account from where I can set up a standing order/online transfer to feed my main current account in time for monthly regular savings accounts to be drip-fed from that current account. I think that Rabo may probably be the best fit.....
 
RaboDirect offer a low rate and seem more likely to drop their rates again.

Northern Rock offer online transfer facilities and offer 5.0%.
 
Thanks for the NR tip; I hadn't really thought about them. The only advantage that Rabo would have over NR would be the ability to set up standing orders but I guess logging on to a NR account to do a manual transfer once a month is worth the extra interest.....:)
 
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