I'm now debt free and want to start saving... Which bank account?

Vini123

I got myself into a bit of credit card trouble, as is the norm when young, I think. I ended up taking out a 3 year loan to consolidate my CC's and pay off my car. It suited me fine.

I made my last payment on the 26th of May and am now, debt free

As I'm so used to paying out the monthly repayment I would like to start saving that money. I have an HSBC E-ISA along with my HSBC current account. The problem is they both show in the same Online account, so if I find myself needing money, it's all too easy for me to move it from one account to another.

Previously I had Halifax as my main bank and HSBC as my 'savings' bank. But Halifax really annoyed me in February so I closed the account(s) and moved everything to HSBC.

What I'd really like to do, is open another account with someone else so that I can setup a monthly SO and have the cash go to somewhere that I can forget about it.

I thought about signing up to smile or another online bank, but most seem to request that you transfer your wages/a large amount in each month. Which unfortunately I wont be doing.

Interest rates are not something that bothers me, I don't have an amount of cash that would benefit from a slightly higher interest rate. Needless to say, interest is pointless at the minute anyway!

I have some premium bonds already, and I have considered buying them on a monthly basis, but it's a little too much effort to buy/sell them. I really want a bank account with good online facilities.

apt

Although you say you are not interested in a high interest rate I still think the Barclays monthly saver would be a good choice. Runs for 12 months, pay in £20 to £250 per month by SO. 6% interest if you make no withdrawals and still 3% for a month after you make one or more withdrawals.

Vini123

apt wrote: »

Although you say you are not interested in a high interest rate I still think the Barclays monthly saver would be a good choice. Runs for 12 months, pay in £20 to £250 per month by SO. 6% interest if you make no withdrawals and still 3% for a month after you make one or more withdrawals.

Sounds good, but when you say runs for 12 months, what does that mean?

Meenu

Congratulations and well done on becoming debt-free

Reaper

Vini123 wrote: »

Sounds good, but when you say runs for 12 months, what does that mean?

It means the account closes after a year and you will be switched to whatever instant access account they have available at the time. You will probably need to take action at that point moving it somehere else as the account they put it in probably won't pay much interest.

If you want to start another one for another 12 months then you can do so if they are still offering it at the time.

Read more about regular saver accounts here:
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Vini123

Sounds good, interest though is not something that interests me right now.

a) the rate is poor
b) there won't be enough in the account for it to be worth it