Big lump sum to save?

A reader from Woking has sold her house and has a large amount to put in the bank.

Andy McKechnie, head of sales and marketing for savings at Halifax, tackles the problem.

Sarah asks:

I have a large sum of money from selling my house.

What type of savings account should I put this in, if I want to earn the best possible interest rate?

Andy replies:

There are a huge range of savings accounts in the market, as well as a number of investment products, that may be suitable for you.

I would suggest that you sit down with a qualified Personal Financial Advisor (PFA) to go over all the options available to you.

The right type of account for you will depend on a number of factors, for example access requirements and how often you need to withdraw your money. If you can afford to make limited withdrawals (if any) then a fixed rate account will offer you a high rate of interest. However, if you'd prefer to make regular withdrawals, then an easy access account may be a better option.

If you want to earn the best interest rate, and you can afford to leave your money untouched, then I would suggest looking at fixed rate accounts or an ISA.

Remember, the higher the AER, the greater the return.

If you have a question for Andy, go to the myfinances.co.uk Ask the Savings Expert section.

Or for more information on your savings options go to savings at Halifax