Best current account for young adult

ulysses76

My daughter has recently started work & would like to change from her RBS account as it is a Solo/Maestro debit card, with not too many outlets,to the more common Visa or similar type debit account giving the best interest.
Any suggestions on the best account for this?
I have looked at A&L current account but you need to be over 21 & she is only 19.
She banks approx £750-850 per month & has no outgoings
Basically looking for an account with a good rate of interest, no overdaft facility & with Visa.
Thanks
:j

rb10

Most banks will accept her for a current account with Visa debit card from age 18+.

Unfortunately, if she's only paying in around £750-850 per month, she's unlikely to be able to get much, if any, interest, as they generally need £1k per month to be paid in. But, having said that, if she opened, say, the Halifax Reward account (probably the highest payer for interest), then whilst now she wouldn't get anything, as soon as she managed to pay in £1000 in a month, she'd have £5 paid to her (that's after tax, or £6.25 before tax).

You say she doesn't want an overdraft facility ... an overdraft will always be optional, and she can choose to have it set to '£0'.

Baldur

ulysses76 wrote: »

I have looked at A&L current account but you need to be over 21 & she is only 19.

Don't know which A&L account you looked at, this one seems to meet most of her criteria - http://www.alliance-leicester.co.uk/current-accounts/premier-21-account.aspx

To be able to have a Premier 21 Current Account you must be aged between 16 and 20 and pay in your earnings. This could be your wages, allowances or other regular money that you may receive.

You need an e-mail address and access to the internet.

ulysses76

Thanks, I never noticed the Premier 21.
:rotfl:

apt

The drawback with the Alliance and Leicester Premier 21 Current Account is that the 5% rate is only paid on the first £1,000. So you would get more money from the Halifax Reward account. Only being paid £750 per month is not a problem. Once a month just withdraw and pay in £250 and that qualifies for the £5 per month.

trynsave

If it were my daughter I'd open the following:

Quidco or similar a/c
Apply through them for HSBC Advance a/c - going through cashback earns £50!

Then once opened apply for HSBC regular savings a/c. It pays 8% fixed cr. interest if you can save between £25 and £250 pm. A/c must remain for 12 mths.

If she earns 3x that with no outgoings it would be great if she could get into a good savings habit before she learns how to spend! She also couldn't 'dip' into it as and when.

Most instant access a/cs are paying pooring, and current a/c virtually nothing at all!

book12

Your daughter should apply for one of these accounts, as they have a VISA debit card with them:

Barclays: http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=homefreegroup&value=12859&target=_self&site=pfs

Lloyds TSB: http://www.lloydstsb.com/current_accounts/under_19s_account.asp

Banks should upgrade to an 'adult account' once a customer turns 18 or over.

System

A full Maestro card is accepted at most places, and if she changes to an Interest Paying Current Account, she'll can get a Highline (Maestro) card.

If she uses that in conjuction with a RBS Cash ISA Plus savings, then that would be fairly competitive in the current climate (This excludes Abbey/A&L)

I realise she doesn't want an overdraft, but the 1st £100 of the overdraft is interest free with RBS, which is good for a small buffer.

ulysses76 wrote: »

My daughter has recently started work & would like to change from her RBS account as it is a Solo/Maestro debit card, with not too many outlets,to the more common Visa or similar type debit account giving the best interest.
Any suggestions on the best account for this?
I have looked at A&L current account but you need to be over 21 & she is only 19.
She banks approx £750-850 per month & has no outgoings
Basically looking for an account with a good rate of interest, no overdaft facility & with Visa.
Thanks
:j