I've come into a bit of property and cash. The cash part will be around 60,000 pounds. I want a safe long term savings account that pays a nice monthly or quarterly interest payment. My intention is not to spend any of the lump sum but transfer the interest into my Thai bank account to give me a bit of extra spending money while leaving the actual capital intact.
I'm a youngster and I'm not well versed in personal finance (I've lived in Thailand most of my adult life and have never even filled in a tax return form) so please humour me.
I have been looking at a A scottish Widows Deposit account which will give me a Gross interest rate of 5.66 % and a Annual Equivalent rate of 5.29 %. . I can access the money at anytime and the interest is paid monthly. However I'm not really clear on the difference between these two types of interest which one will I actually recieve?
As I am looking not to spend the actual capital and just enjoy a little bonus interest payment each month I reckon this account is for me.
Does anyone else have a similar arrangement? Are their any major pitfalls to my plan?