Paying in cheques to a savings account

cacique

My daughter is looking for a savings account that she will be able to use to pay in cheques, paid to her by her daughter's nursery as a refund of fees for the free hours her daughter is intitled to.

As she is a working mum she would prefer to have an account that she can manage online or by post.

It seems that a cash ISA is out of the question, as they all seem to want cheques drawn on your own account ( as she is occasionally overdrawn she would prefer not to have to pay the cheques into her current account first!).

Does anyone know of an account that pays an acceptable rate of interest, is easy to operate, and accepts third party cheques?

Many thanks for any suggestions

derrick

ING is OK with cheques made payable to account holder,but as with all new accounts you will need to open it with a cheque drawn on you linked account,this can be for as little as £1. there is a freepost address for posting cheques etc, and at the moment are paying 4.5% gross

MikeLB

For convinience, I have a Tesco Savings Account for this exact reason. You can pay the cheques in at most stores at the customer service desk and it makes no odds who wrote it to you. You can post them as well. Sainsburys also have a smilar one. Not sure what current rates are.

Debt_Free_Chick

cacique wrote:

as she is occasionally overdrawn she would prefer not to have to pay the cheques into her current account first

The general rule of thumb is to pay off debts first - and she should definitely pay off the overdraft if she is paying interest and/or charges on it.

If she is regularly overdrawn she may be living beyond her means - and if she continues to do so, she will have serious debt problems.

Not wishing to pry - you don't need to respond or give me more information - but the words "occasionally overdrawn" rang a tiny alarm bell.