Need help reading this page? Click to activate Recite Me popup.

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

You might also like

Personal savings allowance

If you are a UK taxpayer you may get a tax-free savings allowance.

How does it work?

Savings calculators

Pop in your figures and we’ll do the maths.

Calculate your savings

Savings and Cash ISAs

Save for this, save for that. We have a range of savings accounts however you want to save.

Find a savings account

Savings support

From savings calculators to setting up a standing order, we've got you covered.

Help and support

Savings support

From savings calculators to setting up a standing order, we've got you covered.

Help and support