Savings accounts with a passbook

LondonGirl08

So I am not capable of looking after money.

Absolutely useless in fact.

So now I have a new job and I have started budgeting properly and paying off my debts, my sister has helped me budget in some money for savings. Around about £150/£200 a month whilst still paying off all my debts, rent, learning to drive etc.

Which bank would be good to get a savings account with? I currently have a Lloyds online saver but I'm more than likely to keep dipping in and transferring money into my current account if I do that. My sister has said if I get a passbook account she will keep ahold of it for me and then make sure I really need the money before I withdraw anything.

If I'm looking to save about 2/3k per year at the moment and then more in the future which will give me a better rate of return. I have absolutley no idea where to start.

anniecave

look on moneysupermarket.com for savings account with branch access - these will usually be the ones giving you a passbook - thenlook for a provider with a branch in your area

abbey do passbook accounts still for example

LondonGirl08

anniecave wrote: »

look on moneysupermarket.com for savings account with branch access - these will usually be the ones giving you a passbook - thenlook for a provider with a branch in your area

abbey do passbook accounts still for example

Thanks for that. Won't be going with Abbey... I have "issues" with their passbooks. Basically I have an account with them, it's only got about £50 in it but as I got it when I was small it has my mum as the signer on it. Long story short, first she was abroad for four years and I couldn't withdraw anything and then she died and even when taking down her death certificate etc they wouldn't let me at it. It was at about £50 the last time I looked at it a year ago and it's probably at least £50.50 now! Haha.

LondonGirl08

I've had the interest dropped on my cc to like 0.5% until next year and my overdraft is interest free for another year. The other debt is a personal debt to my employers and I'm paying them back £50 per month for 6 months.

Besides if I don't start saving something my sister will kill me, haha

posted_2

0.5% pa or per month? Saving rates are so pitiful atm, I'd consider paying off the credit card instead. You'll be lucky to get £20 in interest over a year, and then you have to take off whatever you are paying on the CC.

http://www.moneysavingexpert.com/cards/pay-off-debts

LondonGirl08

I know, I'd rather get a head start on paying everything off but my family are really harping on at me about saving. They aren't as savvy as you guys I have to say... also I am looking at buying run around for me and my dad so i can practice driving and he can go out and about. So saving has to be it at the moment.

lr1277

I take it you don't want the passbook to put money into the account? Otherwise temptation might be too much?
Most accounts will allow you to transfer funds in electronically, but you need to check as I suspect some don't.

In my experience building societies or former building societies are the ones that normally do passbook accounts.

I am not hung up on the interest rate. Yes it is nice to get more than inflation, but the saving is the thing for me. It is better for me to save £100 (and not spend it) than worry whether I get £1 or £1.50 in interest.

posted_2

Show them the golden moneysaving rule, and do the maths.

Running cars ain't cheap.

LondonGirl08

posted wrote: »

Show them the golden moneysaving rule, and do the maths.

Running cars ain't cheap.

I know... why do you think I'm buying it for me and MY DAD haha :rotfl:

I get better insurance then (and as I'm nearly 24 etc it'll be lower than if I had started before). He's offered to pay for the tax, MOT etc and I just worry about when I put petrol in and stuff.

posted_2

There will come a point where the debt might be at 20-25%, and then the interest on 8k (if you have nothing left of the savings to pay it all off) will start to mount up, and drag you down. Also new employees have no job security.

All I am trying to hammer home is to plan for that date/possibility, otherwise a whole years saving will vanish in credit card interest, every year, and you probably won't be debt free for a long time.

7sefton

As you are probably aware, passbooks are probably the worst option if you are looking for decent interest, but also the best for remving temptation (short of locking your money away in a bond).

All building societies offer passbooks accounts, with some having fairly ok interest rates. The big ones - Nationwide, Britannia, Yorkshire etc - are the obvious ones to look at, but do do some research to see if you have a local building society with an account that suits your needs.

As for the high street providers, Halifax, Northern Rock, Bradford & Bingley and Chelt & Glos offer passbook accounts. Again, compare and contrast the interest rates and terms. I think Abbey no longer offer passbooks for new customers.