I know regular saver accounts offer a higher rate of interest, but would I not be better leaving my money as a lump sum in an account with a lower interest rate? I'm talking of £35,000.
2006-12-30 02:14:34 · 3 answers · asked by Jackie 4 in Business & Finance ➔ Investing
This money wil be used towards my retirement as I am mid 50's now and dont have a good pension.
2006-12-30 02:59:31 · update #1
We need more information to understand your situation.
Most importantly, how old are you? If you are under 40 and are saving for your retirement, you should be putting your money in a mutual stock fund. The historical returns on stocks are much better than those in a bank account.
If you are older than 40, then it depends on how soon you hope to retire or whether you need the funds for college expenses for your kids.
As you can see, it all depends on what you are saving for and how far away those needs are.
2006-12-30 02:23:54 · answer #1 · answered by Allan 6 · 0⤊ 0⤋
It depends. Can you save regularly? Does the regular saver account allow lump sum investments?
If you can save regularly, go for it and enjoy the higher interest. Of course, regular saver accounts usually come with restrictions on withdrawals. You may want to save some in a basic savings account that you can access in an emergency.
2006-12-30 10:18:57 · answer #2 · answered by skip 6 · 0⤊ 0⤋
You could invest all the 35000 in a risk investment also. therefore you would gain higher interest and would be leaving the full 35000 in that account. You could also split the money, some in regular saver accounts and some in a low interest rate investment. personally i would put it in a regular saver.
2006-12-30 10:18:54 · answer #3 · answered by blue1 3 · 0⤊ 0⤋