What should I do with a lump sum of money?
If you have a lump sum of money, you have a few options to consider when it comes to what to do with it and how to best make it work for you. Of course, this depends on your financial goals and personal situation. For example, you might want to consider depositing the money into a savings account to earn interest, paying off debt or splitting it several ways.
Here are some ideas for what to do with a lump sum:
Create an emergency fund
Pay off any debt you may have, such as loans, credit cards and store cards
Put it into a pension pot
Are lump sum savings accounts a good investment?
Lump sum savings accounts can be a good investment as they are designed specifically for larger sums of money. They often offer a competitive rate of interest, are quick and easy to set up, and you can choose fixed rate or variable terms. This means you can choose the set-up that best suits your circ*mstances.
What’s the best lump sum savings account?
When looking for the best lump sum savings account for your needs, it’s important to shop around and compare the market. While you’ll probably want to seek out good interest rates, don’t forget to check the terms and conditions of the account. Think carefully about whether a fixed rate term would suit your situation (if you can afford to lock your money away), or if you would prefer a more accessible savings account. It’s a good idea to read the small print when deciding on a savings account.
Are lump sum savings accounts protected by the FSCS?
Lump sum savings accounts are protected by the FSCS up to £85,000 per person, per banking group, or £170,000 if you have a joint lump sum savings account.
