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  • FIRST POST
    • johnD17
    • By johnD17 18th Apr 17, 12:24 PM
    • 39Posts
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    johnD17
    Advice: What Next afer high interest accounts
    • #1
    • 18th Apr 17, 12:24 PM
    Advice: What Next afer high interest accounts 18th Apr 17 at 12:24 PM
    Hi All -


    Whistle stop summary:


    I'm lucky enough to:


    • Own my own flat
    • Saving towards a house (joint) with my g/f who has no savings
    • Have savings in 1. Santander 123 2. RBS Vantage 3. chunk of premium bonds and have just opened 4. Nationwide Flex.
    • G.f has just opened a Vantage account and a LISA (stocks and shares) with minimum investment until a standard (non investment) account is launched in the summer.


    I have recently gone from being employed, to being self employed as a limited company. I'm 28 and don't yet have my own separate pension setup.


    Reading the site, there doesn't seem to much else out there (without long term tieing money up, or risky investments).


    I have a large chunk in premium bonds. Conscious I'm not getting much out of this, but as rates are garbage elsewhere, who knows....


    Any advice is welcome


    Shame Santander cut its rates as it would have been worth opening a joint account with g/f and getting her one too.
Page 1
    • chockydavid1983
    • By chockydavid1983 18th Apr 17, 12:53 PM
    • 392 Posts
    • 222 Thanks
    chockydavid1983
    • #2
    • 18th Apr 17, 12:53 PM
    • #2
    • 18th Apr 17, 12:53 PM
    From what I hear, as a limited company, pension should be a priority as it's very tax efficient.
    • johnD17
    • By johnD17 18th Apr 17, 1:04 PM
    • 39 Posts
    • 0 Thanks
    johnD17
    • #3
    • 18th Apr 17, 1:04 PM
    • #3
    • 18th Apr 17, 1:04 PM
    Thanks - I've heard that too - i suppose it's not something I was planning to look at until the end of the year when i know 1) if i get an extension and 2) the money in my business account to play with. Funds for retirement arent really my priority either. Main goal is maximising personal savings for a house, and I'm actually worried my large chunk will be eroded as house prices continue to rise.
    • jimjames
    • By jimjames 18th Apr 17, 1:13 PM
    • 11,845 Posts
    • 10,223 Thanks
    jimjames
    • #4
    • 18th Apr 17, 1:13 PM
    • #4
    • 18th Apr 17, 1:13 PM
    You say what next "after current accounts" yet only list a limited number and no mention of regular savers. So what next - use all available accounts
    Remember the saying: if it looks too good to be true it almost certainly is.
    • johnD17
    • By johnD17 18th Apr 17, 1:51 PM
    • 39 Posts
    • 0 Thanks
    johnD17
    • #5
    • 18th Apr 17, 1:51 PM
    • #5
    • 18th Apr 17, 1:51 PM
    Next step would be tesco - but that requires another 3 direct debits.

    The regular savers all require a current account, so i could open Santander but your getting a tiny 90. It's when the number of accounts, DDS and hassle starts to outweigh the returns, hence my post - isn't there anything better ? Higher interest?
    • chockydavid1983
    • By chockydavid1983 18th Apr 17, 2:09 PM
    • 392 Posts
    • 222 Thanks
    chockydavid1983
    • #6
    • 18th Apr 17, 2:09 PM
    • #6
    • 18th Apr 17, 2:09 PM
    Not really if saving for a house.
    Current accounts and regular savers take a bit of work initially to set up but then take care of themselves pretty much via SO's.
    You can open Tesco internet and instant access savers for DD requirements.
    • kidmugsy
    • By kidmugsy 18th Apr 17, 2:25 PM
    • 9,335 Posts
    • 6,125 Thanks
    kidmugsy
    • #7
    • 18th Apr 17, 2:25 PM
    • #7
    • 18th Apr 17, 2:25 PM
    You are aware that your gf's LISA won't be useful for buying a house jointly with you since you already own a property?
    • Westie983
    • By Westie983 18th Apr 17, 2:31 PM
    • 3,673 Posts
    • 13,674 Thanks
    Westie983
    • #8
    • 18th Apr 17, 2:31 PM
    • #8
    • 18th Apr 17, 2:31 PM
    Next step would be tesco - but that requires another 3 direct debits.

    The regular savers all require a current account, so i could open Santander but your getting a tiny 90. It's when the number of accounts, DDS and hassle starts to outweigh the returns, hence my post - isn't there anything better ? Higher interest?
    Originally posted by johnD17
    There are some regular savers out there that dont require a bank account, namely from the building societies, (Kent, Virgin, Bucks, Saffron) and some regular savers just require you to have the account but you can fund the regular saver from another bank account. (TSB I believe) so could get more interest over a year or more to bulk up your house fund.

    Westie983
    Save 12k in 2017 #16 Total £12080/£12000 100.66%
    Sealed Pot Challenge ~ 10 #97 Total (£252) +£158/£500 = 82.00% ( x 10)
    Xmas 2017 £1 a Day #6 Total £202/£365 = 55.34%
    Virtual Sealed Pot #1 Total £900/£1000 = 90.00%
    £2 Savers Club 2017 #3 Total (£1450)+£50/£2000 = 75.00%
    Total £15092.00/£15865 = 85.12%


    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • eskbanker
    • By eskbanker 18th Apr 17, 3:06 PM
    • 4,817 Posts
    • 4,547 Thanks
    eskbanker
    • #9
    • 18th Apr 17, 3:06 PM
    • #9
    • 18th Apr 17, 3:06 PM
    You are aware that your gf's LISA won't be useful for buying a house jointly with you since you already own a property?
    Originally posted by kidmugsy
    That's news to me, and to MSE too, judging by point 3 at http://www.moneysavingexpert.com/savings/lifetime-ISAs#buyingaproperty:
    If you're a first-time buyer making a purchase with someone who's owned before – you can still open one and use it towards a home purchase together.
    This obviously assumes that gf hasn't owned a property before, but you appear to be specifically suggesting that OP's ownership precludes gf from using a LISA for a joint purchase, which wouldn't seem to be accurate....
    • EachPenny
    • By EachPenny 18th Apr 17, 3:18 PM
    • 1,193 Posts
    • 1,039 Thanks
    EachPenny
    Hi All -
    Any advice is welcome
    Originally posted by johnD17
    Possibly not the kind of advice you were thinking of, but maybe the best investment advice you could ever get in your situation is to make sure you get good legal advice on how things work with joint bank accounts and jointly owned property - in terms of being in a relationship together, co-habiting, and perhaps getting married.

    The last thing most people think about in a relationship is what happens if it ends, for whatever reason, and not planning ahead can be very costly. I don't want to put a downer on your relationship and plans for your future together, but for both of you a small investment in legal advice now will pay you back many times over in the future.

    Having recently helped a friend through a difficult divorce, the number one thing she would do differently next time is to make sure she understood the legal situation and did things 'properly' from day one in the relationship rather than assuming everything would work out ok. Even the friendliest splits between couples is not a cheap process if it involves joint assets which are not easily divided between two. My friend's divorce, with no net assets between them, still racked up legal costs in the order of 50k

    Discussing what happens in the future if things go wrong is not the most romantic thing to do, but it is essential for both of your future security and welfare. Consider for example if you jointly own a house but are not married and something happens to you - what would happen to your gf's home?

    So again, apologies if this in anyway comes across as negative, but the very next investment you should consider is legal advice, if you have not already got it of course

    With very best wishes to you both.
    • johnD17
    • By johnD17 18th Apr 17, 5:31 PM
    • 39 Posts
    • 0 Thanks
    johnD17
    Thanks for the above. Re couples advice, i agree, I'm quite objective anyway but probably a bit early in terms of any legal ramifications!

    Re all the accounts out there, it's just so frustrating that they have such caps on the amounts. I did see a UK fixed bond offering c. 10% but no good to me as the house is will come sooner than the term.

    Re LISA this site specifically calls out that i would be ok as she hasn't owned in her own name.
    • EachPenny
    • By EachPenny 18th Apr 17, 5:51 PM
    • 1,193 Posts
    • 1,039 Thanks
    EachPenny
    Re couples advice, i agree, I'm quite objective anyway but probably a bit early in terms of any legal ramifications!
    Originally posted by johnD17
    You mentioned the possibility of joint accounts... even thinking about such things means it isn't too early to start thinking about the legal implications as well

    The problem is enjoying life over takes dealing with the details... then one day it becomes a problem. Ask anyone who has had a co-habiting partner die without leaving a will, for example. Pensions, life insurance, making a will etc are all things which are easy to put off until tomorrow - but sadly in some cases tomorrow never happens.
    • johnD17
    • By johnD17 18th Apr 17, 6:26 PM
    • 39 Posts
    • 0 Thanks
    johnD17
    re tesco DD comment - martin says:

    Need-to-knows
    To get the interest, you'll need to pay in £750 and pay out at least three direct debits each month - and direct debits to a Tesco Bank savings account don't count. Tesco Bank counts a month as a statement, not a calendar, month.

    If RBS weren't cutting rates just as I got my g/f to open vantage, It would be clear next step would be get a joint vantage account.

    Now, I'm not sure. I'll probably get the nationwide saver when my nationwide account opens. If I can find 3 DD's, I'll open the Tesco Bank. Other than that, not sure.


    Yep I hear you with the above. My mum and dad were in that boat, however making a will in time saved a whole host of issues.
    • badger09
    • By badger09 18th Apr 17, 6:37 PM
    • 4,987 Posts
    • 4,180 Thanks
    badger09
    johnD17

    You keep mentioning RBS Vantage accounts.

    To avoid confusion, you mean BoS
    • ColdIron
    • By ColdIron 18th Apr 17, 6:39 PM
    • 3,163 Posts
    • 3,603 Thanks
    ColdIron
    If RBS weren't cutting rates just as I got my g/f to open vantage, It would be clear next step would be get a joint vantage account.
    Originally posted by johnD17
    Do you mean the Bank of Scotland Vantage?
    • johnD17
    • By johnD17 18th Apr 17, 7:06 PM
    • 39 Posts
    • 0 Thanks
    johnD17
    RBS BoS - same difference

    It did annoy/frustrate when I first applied - my own confusion led me to think it was an RBS account, it then popped up on my Halifax account
    • bigadaj
    • By bigadaj 18th Apr 17, 9:50 PM
    • 9,172 Posts
    • 5,860 Thanks
    bigadaj
    RBS BoS - same difference

    It did annoy/frustrate when I first applied - my own confusion led me to think it was an RBS account, it then popped up on my Halifax account
    Originally posted by johnD17
    It's very different, totally different banking groups and licences.

    Rbs is also financially very much worse off than bos, if you don't know what bank you have your money with it doesn't bode well for wider financial education.
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