Lump sum, will need to access, high interest savings advice

[finfitrulesok]

DH is getting a redundancy payout. I want to make sure we do the sensible things with it. He will have to live off it, so I don't think an ISA would work. I looked at high interest instanst access savings accounts, but it is confusing me, as most say 'maximum monthly deposit £200'.
He already has chase, as do I, but they emaoled to say our 4.5% is going down to 2.5%.
What would you do with it? It is about a year's salary on a low paid job. Thanks

Half in Premium Bonds, half in a high interest instant access account? Try Barclays and Monument, both of whom I find very good.

ETA - you can look for a monthly income account, which will give you a small amount each month?

Trading 212 flexible cash isa - decent rate and interest is paid monthly - stick 20k in there to start

20k each adult into Trade 212 Easy access ISA

Chase have easy access savings 4.5% but it is not tax free

Can have a maximum of 50k each in Premium bonds & all prizes are tax free

An easy access ISA would work. He can put £20,000 into it and the interest is tax free. In the early months, before he has withdrawn much from an ordinary savings account, the interest from the total amount might tip over into the taxable range.

You don’t say how much he will get, but maybe about £25k? The remaining £5000 could go in a high interest account without risking exceeding his allowance. He could put it in an ISA in your name, but he might not want to, and it probably isn’t worth it.

You can make lump sum deposits - I think you’re looking at the very high interest accounts which only allow small monthly deposits.

Have a look on the Moneysaving Expert site for the best accounts (Trading 212 will be there) and don’t be afraid to switch accounts after a few months if you find a better rate.

Thank you all, very helpful.