Student Savings Account

andyjb_3

I am about to start my first year of Uni, and have just set up a current account with NatWest.

Barclays have said that they'll let me keep my Children's Savings account for another couple of weeks until I find another savings account.

I would prefer to hold a savings account with a high street bank and it would have to be instant access.

I know that Kaupthing Edge is the recommended savings account on this site, but I do remember seeing some bad reviews somewhere.
Also, would I have to send them my passport (I am a bit apprehensive about this)?

I would like a second opinion on whether Kaupthing Edge is really the best bank for my situation, and what high interest, instant access, student friendly alternatives there are.

Thank you in advance for any advice.

John_0771

andyjb wrote: »

I am about to start my first year of Uni, and have just set up a current account with NatWest.

Barclays have said that they'll let me keep my Children's Savings account for another couple of weeks until I find another savings account.

I would prefer to hold a savings account with a high street bank and it would have to be instant access.

I know that Kaupthing Edge is the recommended savings account on this site, but I do remember seeing some bad reviews somewhere.
Also, would I have to send them my passport (I am a bit apprehensive about this)?

I would like a second opinion on whether Kaupthing Edge is really the best bank for my situation, and what high interest, instant access, student friendly alternatives there are.

Thank you in advance for any advice.

I'm in the same situation as you, and I have decided to open and use a Natwest E-ISA (£3600 Max 5.50% dont have to pay tax so works out better than Kaupthing) and when that's full use Kaupthing Edge

NBE

As a student your annual income is probably less than the income tax threshold. Therefore you can open any savings account and as long as you fill in an R85 form for that account you will be paid interest with no income tax. This means you can get the full benefit of high interest savings accounts for the length of your university studies. This means you can hunt around for the best interest rate and you are not restricted to the £3600 per year limit on a cash ISA.

Lokolo

Any reason why a high street bank?

Rates are going to be poor with them.

Masomnia

I have Bradford and Bingley's internet saver at 6.51% and have had no problems, would definitely recommend that.

I do think it's worth paying some into an ISA too, yeah the rate will be lower than gross interest on other accounts, but you have to bear in mind that you keep that money tax free in future also. So when you do become a tax payer you will have a nice lump sum accumulating interest tax free when your other accounts won't be.

Spread your money about a bit is my advice

John_0771

Lokolo wrote: »

Any reason why a high street bank?

Rates are going to be poor with them.

Did you read our posts? We don't want to open tons of accounts, we're with Natwest already due to the student account.

andyjb_3

Lokolo wrote: »

Any reason why a high street bank?

Rates are going to be poor with them.

In case of needing the money stored there in an emergency (e.g. a bill is due or i need money for an unplanned train journey), I can get it same day (albeit in cash) from a high street bank instead of waiting 4 days.

NB: I'm in the happy situation where my ISA is full But I don't want to touch any of that money for 4 years (when I graduate)

melancholly

John_0771 wrote: »

Did you read our posts? We don't want to open tons of accounts, we're with Natwest already due to the student account.

never ever go with loyalty with a bank as a way to choose what account to have. it can be a bit more difficult to have multiple bank accounts, but with online access and now transfers happening on the same day, it's not difficult to manage. loyalty to any one bank is one the main reasons people get a bad deal - they don't want to change and so they get stuck with poor interest rates!

and a student account with natwest and a savings account somewhere else isn't 'tons'. it's about costs and benefits - i personally think you'll benefit more in the long term if you shop around away from the high street; whether you think the cost in annoyance of that is too much is your call, but i wouldn't rule it out!

Lokolo

John_0771 wrote: »

Did you read our posts? We don't want to open tons of accounts, we're with Natwest already due to the student account.

Tons of accounts? 1 extra account online isn't going to make much of a difference.

In case of needing the money stored there in an emergency (e.g. a bill is due or i need money for an unplanned train journey), I can get it same day (albeit in cash) from a high street bank instead of waiting 4 days.

NB: I'm in the happy situation where my ISA is full But I don't want to touch any of that money for 4 years (when I graduate)

What you will find out now, is there is something called FPS, which stands for Faster Payment Scheme. It has been operating since May and a lot of the banks have activiated it, it means money can be transferred between accounts within a few hours, meaning, I could transfer my money from my internet savings account --> current account in 2 hours, then go to cashpoint and withdraw.

But, not all banks and accounts have it yet, but they should soon. Something to consider?

tinkerbel

there is a good Alliance and Leister ac going at the moment if you are between 16 and 21. It isnt really a savings account (so I think they will do a credit check - but i passed and I have nothing and am OD with my student natwest) but it has a 10% interest rate for balances up to £1000 and when you sign up and you can get a bonus if someone refers you to do it (you get £25 and the referer gets £25) - I have only just opened my account and have no details yet so I can't refer you but if you're interested look on the referrers board.
So for the instant access thing I would put £1000 in here (withdrawing the interest every month) and put the rest in a less easy to get to hence possibly higher rate online ac like the Kaupthing Edge. Then you have £1000 for emergencies earning at a really high rate and the rest you can get to if you really need to but its earning a good rate too. If you are a student and earn under the tax threshold, don't forget to send off R85 forms so that your interest isnt taxed!
Hope this helps,
Tink

jennifernil

DD is a student. She has her ISA and savings with Icesave, pays a little below Kaupthing but perhaps more user friendly. Personally, I use Kaupthing, and all the others I mention, to spread the money around.

I can also suggest Bradford & Bingley, Birmingham Midshires and Intelligent Finance.

For an easy to operate account, HBOS is good and offers 5.8%, more if you get one of their limited issue accounts. Good website and easy transfers. She, and I , use them for day to day banking.

And, yes, I do know that HBOS, IF and BM are all under the same umbrella.