What type of account for uni lump sum? I don't geddit...

[Invizicat]

Lucky ds1 and 2 have been given a lump sum by their grandparents with the proviso that it's for use to support their uni living expenses. So I'm thinking we need to put 'lump' into an account (Instant Access? ISA?) that pays some interest and then pay out a monthly amount from it into their current accounts for beer books.

DS2 isn't due to start uni for 2 years so some of the money would sit still until it's his turn.

I don't want to have to move money round each month I'll forget and would like to do it as a direct debit or standing order. So what kind of account do we need? Can you pay direct debits out of an ISA? Any experts out there who can advise us? How do people do this?

the only way to get vaguely reasonable interest at the moment is with current accounts. If they don't have enough income to pay tax, they fill in an R85 form and it doesn't get deducted.

you do need to move money round each month but you do indeed set up standing orders. I don't think ISAs are the place for what you want.

if you can give an indication of the amount I'll give you the list of current accounts and what to do.