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Current acc to pay myself a monthly "wage"?
HelenYorkshire
Posts: 423 Forumite
Hi,
I'm returning to university for an MSc. Fortunately I am being funded :j however the payments are quarterly. My A&L current account requires monthly funding.
I don't want another overdraft - I am already living in one! Therefore my idea was to open a simple account to receive the quarterly funding and dish out the required amount on a monthly basis to A&L. Obviously that means my "receiving" account cannot demand monthly income.
Earning a bit of interest would be great
Any suggestions?
A quick google has shown me Cahoot current account (3.75%) and a Natwest Step account (no monthly income demand).
Thought I'd be better on this board than on the Student board,
Thanks in advance :beer:
I'm returning to university for an MSc. Fortunately I am being funded :j however the payments are quarterly. My A&L current account requires monthly funding.
I don't want another overdraft - I am already living in one! Therefore my idea was to open a simple account to receive the quarterly funding and dish out the required amount on a monthly basis to A&L. Obviously that means my "receiving" account cannot demand monthly income.
Earning a bit of interest would be great
Any suggestions?
A quick google has shown me Cahoot current account (3.75%) and a Natwest Step account (no monthly income demand).
Thought I'd be better on this board than on the Student board,
Thanks in advance :beer:
"She who asks is a fool once. She who never asks is a fool forever"
I'm a fool quite often
I'm a fool quite often
0
Comments
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Does your funding *have* to go into a current acount? If not, consider a Tesco Internet Saver account as the 'receiving' account. It currently pays 6.25% AER (including a bonus for the first year) and transfers from here to A&L will be instant (via the new faster payments system).
cashbackkings are currently offering £20 cashback for opening a Tesco Internet Saver.
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Hi,
No it doesn't have to be a current account, just one with easy transfers. I'll have a look at Tesco, thank you
Any more suggestions anyone?
Silly question - what's the deal with tax on savings? Is it taken automatically? Is there a threshold below which you don't pay? Or is it taken from everything except an ISA(etc)?
Don't want to shoot myself in the foot
"She who asks is a fool once. She who never asks is a fool forever"
I'm a fool quite often0 -
As a broad generalization, bank interest (whether 'current' or 'savings' accounts) will be taxed automatically at 20% by the bank - with the exception of ISAs which are tax free.
AUIU if you're a higher rate tax payer you'll owe more tax on that interest - but if that's you you'll know all about the joys of tax returns etc anyway.student100 hasn't been a student since 2007...0 -
However, if your taxable income for the year will be below your personal limit you can fill in a R85 so that no tax is taken on interest.0
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never go with natwest. the worst bank account EVER0
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