Banking advice

Tiffster

Hi everyone,

I'm in need of some advice with my banking. A bit of info - I'm 22 years old, currently unemployed (desperately seaking anything) i don't have a mortgage, never had a loan.

I currently have a HBOS High interest current account, a HBOS savings account (with nothing in it) a Nation Wide savings account with lots in it and a Nationwide flex account with nothing in it.

The HBOS current account is set up with direct debits for my mobile contract, my car insurance (monthly payments) paypal.

To explain the above, i opened the HBOS accounts some years back and used them obviously. When HBOS nearly closed earlier this year/end of last i took the money from my savings account and opened a savings account with Nationwide. At the same time i applied for a flex account with NW thinking i would get a debit card no problem. Things became a right pain with NW - they refused to give me a debit card and instead i was issued with a "cash card" Now being 22 a cash card is completely useless to me. I use my debit card all the time for online purchases, in store payments etc a cash card is useless - the only thing it can be used for is debit payments.

I was told at the time if i waited a few months and asked again i might get a debit card. I have just made this enquiry today and have been told again i am not allowed a debit card due to lack of use on the flex account. The Savings account has remained untouched - i don't dip into my savings etc. This is the reason why i have kept my HBOS current account.

Today i got a letter from HBOS like many others telling me i will no longer be paid interest on my current account but will get the benefits on the overdraft. I NEVER use an overdraft - i don't even have one setup! I haven't paid in £1000 into the account for some time so haven't been getting the high rate anyway but still got the 0.10% rate i believe.

So, i am now in the position that, i have my current account with HBOS - whom are no longer paying me interest and my savings with Nationwide with whom i can't get easy access to the money - i have to transfer it to the flex account then from the flex account to HBOS.

As i am unemployed i won't be able to go with one of these current accounts that require paying in £1000 + per month etc (at the time being anyway)

I'm at a bit of a loss as what's best to do with my money here. I am worried about closing the HBOS account for fear of not being able to get a debit card elsewhere but on the other hand I'm not happy about getting no interest. I am happy with my savings account being with Nationwide it's just going to be a pain if i ever need access to the money quickly as transfering it will take days.

As im not paying in money each month from the research i've done there aren't any current accounts with interrest rates above .5% - so im not really going to loose much from not getting any interrest as i typically put more money into my savings and keep a low value of funds on the current account.

So - any advice!?

Thank you

Tiff

apt

You should ask Halifax to change your 'High Interest' current account to a Reward current account. You can qualify for the £5 per month reward by putting smaller amounts of money in and out of the account to total £1,000 per month. E.g £100 in and out 10 times. Check what interest rate you are getting with your Nationwide savings account as you may very well get a higher rate elsewhere.

Tiffster

Hi,

I don't have the money to put £1000 in per month. As i said i keep the majority of money in the savings account and a small amount in the current account. I don't want to take anything from the savings account.

Having just checked the savings it's 0.10% savings rate which is just :eek: If i switch it to the 3 withdrawels max per year option it will go up to 2%

Tiffster

Have just been doing more searching, the barclays monthly savings account seems pretty sweet no ?

I would post a link but im not allowed - sorry

I rarely touch my savings, tend to transfer money to it frequently and this offers a good interrest rate.

Any comments ?

apt

As I tried to explain, you do not need to put £1000 into your account in one lump. Even if you just had £20 you can deposit and withdraw this 50 times to claim your £5 reward.

Tiffster

So i can put £20 in for example, then take it out and put it back in over and over you mean ?

apt

Yes. You can use the cash deposit machine in branches or do it over the net if you have two accounts that do faster payments.

book12

If you want income go on JSA.

I would keep your HBOS account as that's the only bank account you have that has a debit card.

Nationwide are quite strict when issuing debit cards. Even people with good credit history and use their account often won't get one.

Tiffster wrote: »

Have just been doing more searching, the barclays monthly savings account seems pretty sweet no ?

I would post a link but im not allowed - sorry

I rarely touch my savings, tend to transfer money to it frequently and this offers a good interrest rate.

Any comments ?

Halifax regular/monthly saver offers a better interest rate than the Barclays one. Halfiax offers 5% while Barclays offers 4.25%.

Go for the Halifax one.

rb10

Keep your HBOS current account. As has been said, this is the only one you have that has a debit card, so definitely don't ditch it! As you don't use an overdraft, these changes are irrelevant to you (although it may be worth setting one up, just in case you make a mistake one day, it happens to all of us).

If you are able to pay in £1000 in a month (whether as income, or just a transfer from a savings account), then the £5/month Reward from Halifax is probably the best 'interest' you'll get. If you're not able to pay in £1000, then there are very few current accounts that pay interest anyway.

HBOS most certainly did not 'nearly close' earlier in the year. Your money is perfectly safe with them, and if you are currently getting 0.1% with Nationwide, it's time to look again. As has been said, the Halifax Regular Saver pays 5% (pay in £25-£500 per month), but you must open and fund this by tomorrow (Thursday) to get this rate.

Tiffster

OK, so do you know how long you have to keep the money in the account for it to register as £1000 per month ? For example i could transfer it from my savings then transfer it back a few days later if possible ? But if i did that then that would lower the rate of interrest i can get from the Barclays account to 3.03% although it's better than nationwides offerings.

Having looked at the offering from HBOS with the 5% saving - that is based on making no withdrawels at all which wouldn't work.

Maybe if i put the money into that account, £1000 into the old savings account i have with HBOS that would give me 5% on the majority of my money and i could use the £1000 to top up the current account.

Thoughts ?

onlypaddy

book12 wrote: »

If you want income go on JSA.

I would keep your HBOS account as that's the only bank account you have that has a debit card.

Nationwide are quite strict when issuing debit cards. Even people with good credit history and use their account often won't get one.



Halifax regular/monthly saver offers a better interest rate than the Barclays one. Halfiax offers 5% while Barclays offers 4.25%.

Go for the Halifax one.

Halifax may offer this, but as these are both Regular Savers then penalties apply for withdrawals such as losing the interest rate or downgrading the account to a terrible rate one. Is a regular saver suitable, the OP said they transfer money in and out regularly. These accounts generally allow one payment a month and like I say, penalise withdrawals.

either way, the penalties on the Barclays account are less than those on the Halifax