Hey Guys - New Moneysaver Here, Need Help Choosing Banks/Accounts.

Joosh

cuedini wrote: »

Is it worth opening an ISA with the new tax year nearly here?

Does that make a difference? Ill still have my 3,600 limit until april 5th, and then i have the 5,100 limit afterwards. Plus, id I go for an ISA with no fixed term I can get out in april and open another ISA due to it being a different tax year...

456789

Yes it is worth it as you can then use up this years allowance

Actually you can open as many ISA's as you want in a tax year - but you can only put 'new' money (i.e. different from transfers) into one.

Joosh

Ah okay. So theres no point in opening more than one anyway then?

456789

Joosh wrote: »

Ah okay. So theres no point in opening more than one anyway then?

you could open one with a higher rate and transfer in cash from previous years

Joosh

Ah yes, that would be it. Thanks.

I'v decided I need to figure out a proper structure of bank accounts before I choose the actual accounts. Whats a good one to use? General one...

Like one account for wages, one for savings maybe? The problem id have there is that after putting the money into the ISA or regular saver I would have the rest in one account. So id probably end up spending too much and not being able to pay subsequent Direct Debits and Standing Orders.

So I need to figure that out. Because if I do it another way, one account for wages, one for savings and one for Direct Debits etc. I need to know how much to put in the one for direct debits first, and of course the amounts COULD change.

And im still undecided about regular savers and ISA's because every month ill have money to save. But if i put say max 250 into the regular saver (its monthly limit) then ill only have about 150 per month for the ISA, losing out with my ISA allowance. But the other way around, 300 per month with the ISA and 100 with the Regular saver, means i could just put it all in the ISA and do the regular saver at the end of the year, because then the ISA interest gives me more. But then, I lose out on the regular saver interest if i dont hit the max... Ahhhh!

456789

You just have to decide which one is best for you - obviously current spending money and savings need to be different.

Maybe try doing this to see how your money is currently being used: http://www.makesenseofcards.com/soacalc.html

If you think you will be spending too much - move cash into another account straight after you get paid and hide/shred the card for it so you don't use it to buy stuff..

Yes the amounts could change - but you should have a rough idea of how much it will be - and I think some companies send the bill before taking the money - you also need to have a bit of a buffer for unexpected bills.

If you know how much you will be putting into each account you could work out how much interest each makes and which will give the larger return - however if you do go with a regular saver you will be foregoing the future tax benefits of having that money in an ISA

also their aren't only regular saver accounts - there are other types too - fixed rate, notice, instant access etc.

psychic_teabag

I noticed that the Norwich & Peterborough 5% regular saver allows one withdrawl (without penalty). I wonder if you can pay into the regular saver, then take some/most of it out into an ISA just before the end of the financial year ?

rb10

psychic_teabag wrote: »

I noticed that the Norwich & Peterborough 5% regular saver allows one withdrawl (without penalty). I wonder if you can pay into the regular saver, then take some/most of it out into an ISA just before the end of the financial year ?

Nothing to stop you doing that.

The Stroud & Swindon one, at 4.5% (variable) also allows one withdrawal per account year, so you could do the same with that one.

Joosh

Iv had a gooood think about this and I have ALMOST decided what to do:

Spending Account:
A good rate cashback card, possibly Amex although the acceptability of it is worrying and also it apparently doesnt give cashback unless you spend over 3.5K a year on it. But nonetheless will be a cashback credit card.

Current Account:
Halifax Reward Account
Gives £5 a month interest if £1000 or more paid in per month, dont think money has to stay in there once put in, but all wages and income will go into this account. Also all direct debits come from this account, and any cash withdrawals as i'm not doing them on a cashback card. Saves me knowing how much to put into an account for direct debits as they come out of the income account. This account will also pay off the credit card at the end of every month.

Regular Savings Account:
Barclays Regular Saver
Not the highest interest one available (0.75% below it) but 4.25% AER for 12 Months, unlimited withdrawals and can miss the pay ins, if i withdraw its still 3.03%, and this account will hold money for yearly savings such as MOT, Car Tax, Next Years car insurance and any other licenses that need doing etc. So withdrawals will be very very minimal anyway, therefore most months will be the 4.25%, plus cash will only be there for MAX 1 year and wont be too much anyway.

Cash ISA:
First Direct
Its 3% Fixed Tax-Free AER Til 9th Nov 2010. So around a years time, which by then I can switch anyway. Will attempt to fill up yearly allowance into this, but after this april coming I doubt ill be able to, but still... long term savings in here. I dont trust the interest rates at the moment, I feel they might rise as they are low at the moment so therefore no 5 year terms etc.

---

Thats it basically, the two accounts I will be withdrawing money from are both main branch companies, so convenient. The ISA is online only, so less likely to be touched which I like, and the credit card company im undecided yet, but I dont mind too much with that, although it will be JUST SPENDING. No balance transfers, NO WITHDRAWALS, and certainly no "direct debits" from it (i know they arent called that but I do know YOU cant cancel them).

What do you think?
Any reccomendations for the credit card also needed. If not a cashback card what could it be?

Cheers guys!
~Josh

456789

Have you had a CC before? AMEX isn't easy to get accepted for

Halifax - the money can be in their for 1 minute and taken out and you will get the £5

They are called continuous payment authorities