Savings Interest Advice

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fairyfairy
fairyfairy Posts: 46 Forumite
edited 15 September 2014 at 2:27PM in Savings & investments
I'm in massive need of advice: I need to move my savings from one highstreet bank - where I have one ISA (it is on a very low percentage) and one book where a nice amount of my savings are just sitting without ANY benefit whatsoever. The bank I'm referring to starts with the letter "S".

I'm in full time education and not currently working, my aim is to save and not access the amount for a while. Not keen on using the option of on-line only banks.

Been looking into this for a while and at this stage i'm going out of my mind.

does anyone use The Coventry?

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  • jimjames
    jimjames Posts: 17,649 Forumite
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    No I don't.

    Any reason you've not looked at tsb? They pay 5% which beats any ISA
    Remember the saying: if it looks too good to be true it almost certainly is.
  • redpete
    redpete Posts: 4,693 Forumite
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    fairyfairy wrote: »
    The bank I'm referring to starts with the letter "S".
    Why so coy about mentioning (presumably) Santander?
    does anyone use The Coventry?
    Not me but have you gone through the links that appear at the top of this thread listing, in particular the one about best NISA rates?
    loose does not rhyme with choose but lose does and is the word you meant to write.
  • jimjames
    jimjames Posts: 17,649 Forumite
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    redpete wrote: »
    Why so coy about mentioning (presumably) Santander?

    Not me but have you gone through the links that appear at the top of this thread listing, in particular the one about best NISA rates?

    Unfortunately if you follow "best" on mse you'll find it doesn't actually give the accounts with the best returns as they aren't ISAs.

    Oddly mse still pump out the mantra that a cash ISA is always best when for most people that isn't the case.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • xylophone
    xylophone Posts: 44,516 Forumite
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    If you are with Santander, does the 123 account not suit?

    Have you looked at other interest paying current accounts?

    Savings rates below but very little joy?

    http://www.thisismoney.co.uk/money/saving/article-1583859/Best-savings-rates-General-savings-Internet-branch.html
  • fairyfairy
    fairyfairy Posts: 46 Forumite
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    jimjames wrote: »
    No I don't.

    Any reason you've not looked at tsb? They pay 5% which beats any ISA

    Thank you for all responses. :)

    While looking around the options, I came across:

    With TSB
    1. Interest. It pays 5% AER on balances up to £2,000. No interest is earned on balances above £2,000.

    2. Funding requirement. Customers must pay in at least £500 each month.

    In my situation my savings are slightly more than that, and I don't have a regular monthly income.
  • Voyager2002
    Voyager2002 Posts: 15,319 Forumite
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    Read some more...

    Since you are a student you are probably not a tax-payer, so there is virtually no benefit to you from using an ISA. Use an ordinary account and fill in form R85 to get your interest without tax being deducted: easy.

    As for accounts like the TSB: simply withdraw the 500 pounds and pay it in straight away. With the TSB you can have two accounts and simply move 500 pounds from one to the other and back again each month.
  • jimjames
    jimjames Posts: 17,649 Forumite
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    fairyfairy wrote: »
    Thank you for all responses. :)

    While looking around the options, I came across:

    With TSB
    1. Interest. It pays 5% AER on balances up to £2,000. No interest is earned on balances above £2,000.

    2. Funding requirement. Customers must pay in at least £500 each month.

    In my situation my savings are slightly more than that, and I don't have a regular monthly income.
    Tsb allows £4000 so if your savings are just above £2000 then you're fine.

    You've misread the details. There is no income requirement. Just pay in £500 by moving it between the 2 accounts.

    But if it's too much hassle or you don't need the interest then just stick to an ISA at 1%.
    Remember the saying: if it looks too good to be true it almost certainly is.
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