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What is a lump sum?

A lump sum is a single amount of money paid in on one occasion. It is usually a large sum of money.

If you find yourself with a large amount of money, you may wish to pay a lump sum into a savings account. The opposite would be to pay in regular smaller amounts of money.

There are a number of reasons why you might want to pay in a lump sum:

  • Inheritance
  • A lottery win
  • A property sale
  • A bonus, promotion or even redundancy payment from work

What should I do with my lump sum?

There is no right or wrong way to handle your lump sum, but each will have a slightly different outcome. Here are just a few things you could do with your money:

  • Put it in a savings account - If you want to keep your money safe and let it earn interest, then a savings account is an option. Discover our savings accounts
  • Put it in a bank account - If you think you'll be spending money, then you could just keep it in your regular bank account
  • Invest it - By investing your money you could allow it to potentially grow. Most investments, such as shares and funds, offer potential returns on your money over a longer term. Learn more about investing

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