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  • FIRST POST
    • Ashan
    • By Ashan 12th Mar 17, 11:58 PM
    • 44Posts
    • 55Thanks
    Ashan
    16k sitting in a no interest paying account. I'm stuck taking a decision
    • #1
    • 12th Mar 17, 11:58 PM
    16k sitting in a no interest paying account. I'm stuck taking a decision 12th Mar 17 at 11:58 PM
    Hi all,

    Like others I have seen here, I'm waking up to late and decide I should and actually could earn interest on my money I save.
    I am a good saver, always have been, I opened my first account with Barclays and stayed loyal with them for 5 years. During those 5 years I had about 17k moving in the account and earned nothing.
    I was thinking I needed to be loyal so that I can get a credit card from them (which I did) and then build a credit score and also was thinking that interest rates are a joke (how wrong I was... )

    Woken up in 2016 by the buzz of switching and chose to say bye to Barclays and gone with Halifax for the bonus plus monthly reward. At the time of the switch (exactly one year ago I had 6.5k ).
    Now I have 16k and I can save 800 to 1000 every month.

    This year in January I was still thinking that I have not done enough service for my savings and inspired by the article on mSE, I started the savings fountain.

    I opened a HTB ISA with Barclays and next week I will be on my 3rd month totalling 1600 with 2.27% interest

    2 Months have passes since then, end although I know what is the next step I am not sure/not decided/ afraid of the impact it will have on my credit score.


    As you might have guessed, I don't own a house and I am willing to get a mortgage. Not a citizen yet and I plan on buying in a year time or 2. I would buy right now if it would be possible but I guess that's just rushed and not smart.


    With all these in mind here's what I was thinking:

    I thought of swithcing to TSB; would have been great with that past switching deal but still I feel like I should keep this Halifax account so that I can have history with it.
    The current deal would offer £10 cashback (7 more than halifax) plus interest on up to 1500. (not a big amount here unfortunately)

    I was also thinking at Nationwide with their 5% for a year and regular saver after 3 months. This would release 2.5k plus £500/mth from my savings.

    Santander is not an option, I don't pay bills and it's not worth it after paying the account fee.

    Bank Of Scotland was the plan before then I found out about the slash. Still a good option at 2% I think.. I would just need to get direct debits.

    Tesco - defines my bad luck - no applications exactly when I found out about it.

    After these, I was also thinking of opening simple bank accounts (barclays) then switch to hsbc/first direct for the bonus. I so want to this, wanted to do it ever since last year, but I am too afraid of the consequences in the future.


    Now, I am not really clueless, but in all honesty, I feel like I am.
    I want to put as much as possible of my money into interest paying accounts but because of the amount limitations of these accounts it would mean a lot of credit checks and traces.
    So I want to find the best way of doing it, planned and with as less accounts as possible.

    Should I keep Halifax and go for TSB, 2xBOS, 1Nationwide + Rsaver = 14k minimum?

    or TSB and 3xBOS? = 16.5k?

    any other suggestions?

    Should I milk the switching bonuses with a donor account as well? or this is too much?

    In which order should I apply? How many days distance should I leave between applications?

    When you open second or third account with BOS, do they perform a credit check again? or is it only one?

    Everyday I am thinking I am going to start where I left but I can't bring myself up to it, due to inexperience and credit score fear, But then I don't feel relieved either, I feel like I am losing money every day, in 5 years about 25K have slept in my account...
    It's time to do something about it.

    Please share your thoughts on my dilemma...I have no one to ask this as everyone I know lives a simple life with spending 110% of their monthly income with nothing left to save.
Page 1
    • redmalc
    • By redmalc 13th Mar 17, 6:27 AM
    • 1,226 Posts
    • 458 Thanks
    redmalc
    • #2
    • 13th Mar 17, 6:27 AM
    • #2
    • 13th Mar 17, 6:27 AM
    Ashan
    I think your dilemma is similar to most investors at the moment and no one can give the answer.
    Myself,I have 180k sitting in cash in my S&S ISA account after selling in January,I made a mistake but that was my gut feeling and now I am unable to currently get back in the markets at 7350 because I still think there will be a correction,who knows.
    • PeacefulWaters
    • By PeacefulWaters 13th Mar 17, 7:46 AM
    • 6,587 Posts
    • 8,079 Thanks
    PeacefulWaters
    • #3
    • 13th Mar 17, 7:46 AM
    • #3
    • 13th Mar 17, 7:46 AM
    Well at least stick it in an easy access savings account while you make your mind up.
    • MyOnlyPost
    • By MyOnlyPost 13th Mar 17, 8:16 AM
    • 1,514 Posts
    • 1,023 Thanks
    MyOnlyPost
    • #4
    • 13th Mar 17, 8:16 AM
    • #4
    • 13th Mar 17, 8:16 AM
    Ashan, you don't need to switch to TSB for the new offer so you can keep your Halifax open and have both rewards.

    Open a Nationwide FlexDirect, if you can switch in an account with 2x DD go to the referals board and you can gain a switching bonus which will be £100 for you and whatever you can negotiate with the referer from their £100, so probably circa £175 total. You can then send from Nationwide £750 to Halifax and back once a month and £500 to TSB and back once a month fulfilling pay in requirements of all 3 accounts. Once eligible open the Nationwide reg saver at £500 per month.
    It may sometimes seem like I can't spell, I can, I just can't type
    • jimjames
    • By jimjames 13th Mar 17, 12:12 PM
    • 11,906 Posts
    • 10,286 Thanks
    jimjames
    • #5
    • 13th Mar 17, 12:12 PM
    • #5
    • 13th Mar 17, 12:12 PM
    Myself,I have 180k sitting in cash in my S&S ISA account after selling in January,I made a mistake but that was my gut feeling and now I am unable to currently get back in the markets at 7350 because I still think there will be a correction,who knows.
    Originally posted by redmalc
    That's exactly the problem trying to time things. Markets could rise further all this year, maybe growing 20% before correcting by 15%. That's then still above the point you got out so deciding when to get back is very tricky.


    OP - there are regular savers that will be ideal for your situation and pay up to 5% as explained with Nationwide. If you're looking to buy a house then S&S ISA isn't the right option anyway.
    Last edited by jimjames; 13-03-2017 at 12:45 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Ashan
    • By Ashan 13th Mar 17, 10:25 PM
    • 44 Posts
    • 55 Thanks
    Ashan
    • #6
    • 13th Mar 17, 10:25 PM
    • #6
    • 13th Mar 17, 10:25 PM
    Ashan, you don't need to switch to TSB for the new offer so you can keep your Halifax open and have both rewards.

    Open a Nationwide FlexDirect, if you can switch in an account with 2x DD go to the referals board and you can gain a switching bonus which will be £100 for you and whatever you can negotiate with the referer from their £100, so probably circa £175 total. You can then send from Nationwide £750 to Halifax and back once a month and £500 to TSB and back once a month fulfilling pay in requirements of all 3 accounts. Once eligible open the Nationwide reg saver at £500 per month.
    Originally posted by MyOnlyPost

    Thank you all! This would only account for about £4000 though (2500 + 1500), what am I to do with the rest of 12k?
    I don't have other bank accounts, so the referal part for nationwide doesn't work for me.

    Should I add BOS or Santander to this? If I open a BOS vantage and then another one, will this reflect in 2 credit checks or just one?

    I would need new direct debits for TSB and BOS and also to keep my DD's from Halifax. so at least 4 new direct debits, this would be an extra monthly cost.

    @PeacefulWaters: wouldn't opening an easy access account also require a credit check?
    Last edited by Ashan; 13-03-2017 at 10:37 PM.
    • MyOnlyPost
    • By MyOnlyPost 13th Mar 17, 10:43 PM
    • 1,514 Posts
    • 1,023 Thanks
    MyOnlyPost
    • #7
    • 13th Mar 17, 10:43 PM
    • #7
    • 13th Mar 17, 10:43 PM
    Read This (bit daunting) http://forums.moneysavingexpert.com/showthread.php?t=5374614&highlight=savings+loophol e

    And this http://forums.moneysavingexpert.com/showthread.php?t=5126573&highlight=direct+debits
    It may sometimes seem like I can't spell, I can, I just can't type
    • Ashan
    • By Ashan 13th Mar 17, 11:11 PM
    • 44 Posts
    • 55 Thanks
    Ashan
    • #8
    • 13th Mar 17, 11:11 PM
    • #8
    • 13th Mar 17, 11:11 PM
    I have red the article about the loophole but not the forum.
    I can see now that the DD's are not a problem. I have 3 with halifax, so that's an extra 1 right there, maybe play some lottery once a month end so on.

    Now I am really tempted to open a basic account like Barclays and then transfer to Nationwide to get extra bonus. Good or bad idea?
    • PeacefulWaters
    • By PeacefulWaters 14th Mar 17, 5:07 AM
    • 6,587 Posts
    • 8,079 Thanks
    PeacefulWaters
    • #9
    • 14th Mar 17, 5:07 AM
    • #9
    • 14th Mar 17, 5:07 AM
    @PeacefulWaters: wouldn't opening an easy access account also require a credit check?
    Not if its a savings account, no.

    And would take a matter of seconds with many providers that you already bank with.

    0.25% is better than 0.00% while you decide.
    • Ashan
    • By Ashan 14th Mar 17, 1:48 PM
    • 44 Posts
    • 55 Thanks
    Ashan
    Not if its a savings account, no.

    And would take a matter of seconds with many providers that you already bank with.

    0.25% is better than 0.00% while you decide.
    Originally posted by PeacefulWaters

    Thank you again. Now, I had a look at the top savings accounts and I have to choose between:


    Westbrom BS (1.05%)
    Skipton (1.02)
    Post office (1.01)
    Tesco (0.96)


    Now to decide between these, Westbrom and Skipton pay interest annually and the other 2 monthly.
    The last 2 can be used for multiple DD requirements.


    So I am leaning towards the last 2 from Post office and Tesco even though they have a lower introductory offer.


    Is my judgement right?


    Next, I will open a Barclays account and switch that to Nationwide
    And will follow with TSB and BOS.


    Hopefully I'll be done in 2 weeks.
    • badger09
    • By badger09 14th Mar 17, 3:27 PM
    • 5,079 Posts
    • 4,276 Thanks
    badger09
    Thank you again. Now, I had a look at the top savings accounts and I have to choose between:


    Westbrom BS (1.05%)
    Skipton (1.02)
    Post office (1.01)
    Tesco (0.96)


    Now to decide between these, Westbrom and Skipton pay interest annually and the other 2 monthly.
    The last 2 can be used for multiple DD requirements.


    So I am leaning towards the last 2 from Post office and Tesco even though they have a lower introductory offer.


    Is my judgement right?


    Next, I will open a Barclays account and switch that to Nationwide
    And will follow with TSB and BOS.


    Hopefully I'll be done in 2 weeks.
    Originally posted by Ashan
    Unless you desperately 2 different accounts, I would go with Tesco.

    The rate differential between the top & bottom is insignificant - even on say £10k it is £9 a year

    There are several threads detailing problems operating the Post Office account, especially withdrawing from it. Tesco is very easy to operate, and allows multiple DDs should you need them

    Also, if/when Tesco start accepting applications for their current account again, you will already be a customer, which might help speed up the process.
    • Ashan
    • By Ashan 14th Mar 17, 5:41 PM
    • 44 Posts
    • 55 Thanks
    Ashan
    Great advice guys!
    I started with the wrong foot here. Barclays returned this error:


    Thank you for your application.
    We're sorry but an error has prevented your account from being opened online.
    What happens next?

    We've sent your details to our processing team who'll complete your application.
    We'll be in touch within 5 business days to give you an update.
    On to working on others I guess. Good thing I have plenty to tick from the list.
    • elephantrosie
    • By elephantrosie 14th Mar 17, 10:22 PM
    • 329 Posts
    • 82 Thanks
    elephantrosie
    You are facing a dilemma what most investors and people with large savings do.

    i know many investors have backed off the market for the past few years due to the volatile situation.
    i also know many people who have huge savings but too busy to learn about investments.

    i personally have no idea what to do about my savings too (sadly).

    in regard to your few questions on credit checks...
    - most banks do perform new credit checks even if you already have accounts with them (i have asked at least 3 banks now)
    - i was told give it a month apart before you re-apply for another account... but no one really know the answer.
    - never screw up your credit score, especially if youre thinking of getting a mortgage in the next six years. you have less than 20k savings and i suspect you will have to borrow 90% of the property price (unless the property is cheaper than that)
    exception to this rule: you have a huge savings and can buy property in cash.

    shall see what the gurus say...
    • elephantrosie
    • By elephantrosie 14th Mar 17, 10:23 PM
    • 329 Posts
    • 82 Thanks
    elephantrosie
    once upon a time, my credit score was so poor that i cannot even get a mobile contract.

    i learnt it the hard way!
    • Ashan
    • By Ashan 15th Mar 17, 3:52 PM
    • 44 Posts
    • 55 Thanks
    Ashan
    I regret applying to Barclays, Error, probably rejected, was told I would be contacted by them and all I got was an email to say that I should go in the Bank.. there goes a black spot on my credit score.. I had 2 addresses in the last 3 years, I don't remember exactly when I have moved at the first one from the past (According to my file) could this be a reason for the failure? at the end of the application I had to tick what products I have, like a test from Equifax and obviously there was no mistake there. Maybe I should check my files first? Worried now ...
    • elephantrosie
    • By elephantrosie 17th Mar 17, 12:17 AM
    • 329 Posts
    • 82 Thanks
    elephantrosie
    Ashan- i do not think any of us managed to understand your last post.
    • JohnRo
    • By JohnRo 17th Mar 17, 12:33 AM
    • 2,356 Posts
    • 2,087 Thanks
    JohnRo
    That's exactly the problem trying to time things. Markets could rise further all this year, maybe growing 20% before correcting by 15%. That's then still above the point you got out so deciding when to get back is very tricky.
    Originally posted by jimjames
    It's really simple, you just wait for a 40% crash.

    'We can't solve problems by using the same kind of thinking we used when we created them.' ― Albert Einstein
    'Facts do not cease to exist because they are ignored.' ― Aldous Huxley
    • Ashan
    • By Ashan 17th Mar 17, 12:33 AM
    • 44 Posts
    • 55 Thanks
    Ashan
    my apologies.

    Well, I don't have good news.

    I was rejected by Barclays online. No one called me and the email encourages me to go in a branch.



    Tried bank of Scotland tonight and got rejected here as well.

    These are basic bank accounts I can't open...with no overdraft requested.

    Not so easy as it seemed...

    Credit score in equifax is good and above uk average. Experian is not bad either. Call credit is even more comprehensive than equifax.

    Granted..I was honest to say that I have only 13 months with the current employer, but the income is decent.

    Should I apply for TSB and Nationwide?

    Reg. my Tesco savers account, how is the interest calculated on a yearly basis? if for 3 months Ihave 10k in it and 9 months 2k, how will they calculate the interest at the end of the year?
    • badger09
    • By badger09 17th Mar 17, 11:32 AM
    • 5,079 Posts
    • 4,276 Thanks
    badger09
    my apologies.

    Well, I don't have good news.

    I was rejected by Barclays online. No one called me and the email encourages me to go in a branch.



    Tried bank of Scotland tonight and got rejected here as well.

    These are basic bank accounts I can't open...with no overdraft requested.

    Not so easy as it seemed...

    Credit score in equifax is good and above uk average. Experian is not bad either. Call credit is even more comprehensive than equifax.

    Granted..I was honest to say that I have only 13 months with the current employer, but the income is decent.

    Should I apply for TSB and Nationwide?

    Reg. my Tesco savers account, how is the interest calculated on a yearly basis? if for 3 months Ihave 10k in it and 9 months 2k, how will they calculate the interest at the end of the year?
    Originally posted by Ashan
    I haven't re read everything, but suggest you pause your current account applications now. Apply for your statutory credit reports (£2 each) from all 3 Credit Reference Agencies. There may be something there which is causing the rejections.

    Re the Tesco savings accounts - have you read the T&Cs which you were asked to save when making the application?

    It is also explained briefly here:
    http://www.tescobank.com/savings/flexible/internet-saver/index.html
    • Ashan
    • By Ashan 17th Mar 17, 11:58 AM
    • 44 Posts
    • 55 Thanks
    Ashan
    badger09, I already have the Equifax free trial.
    Should I trial Experian as well or just get the statuary credit report?
    for callcredit I have noddle, would that suffice?


    Thanks for the info.
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