Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.
Mobile Banking app: Our app is available to Online Banking customers with a UK personal account and valid registered phone number. It’s only available to iPhone and Android users. Minimum operating systems apply, so check the App Store or Google Play for details. Our app does not work on jailbroken or rooted devices. You must register your device. Terms and conditions apply.
A lump-sum distribution is an amount of money due that is paid all at once, as opposed to being paid in regular installments. Lump-sum distributions may be made from retirement plans, commissions earned, windfall earnings, or certain fixed-income investments.
Investing a lump sum means that you don't have to try to figure out the best time to make periodic investments. You can set up your portfolio and let it grow. A 2021 Northwestern Mutual Life study showed that investing a lump sum generally outperforms dollar-cost averaging over various periods of time.
Lump Sum: Which One Is Better? In most cases, the lump-sum option is clearly the way to go. The main difference between a lump-sum and a monthly payment is that with a lump-sum option, you get to have control over how your money is invested and what happens to it once you're gone.
Making a lump sum payment not only reduces the total interest you pay but also speeds up your journey to a debt-free life. With each extra payment, more of your money goes toward reducing the principal, which, in turn, reduces the overall amortization.
Consistent lump-sum payments can shorten your overall loan term since you won't have as much to pay down in monthly instalments. This frees up your money for other financial goals and investments, giving you the freedom to explore new financial opportunities.
A lump-sum deposit provides the most substantial impact, especially if it is applied shortly after taking out a new mortgage. Depending on the amount, you can also apply for a recast and have your monthly payment changed based on the new balance.
Introduction: My name is The Hon. Margery Christiansen, I am a bright, adorable, precious, inexpensive, gorgeous, comfortable, happy person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
