Student Savings Account Question

steisonfire

Hey,

I'm sorry if this has been posted before or it's somewhere else on the board, there's just so many topics/threads it's hard to know where to look :P

Basically, I'm in my first year of uni, i decided not to take out a loan (still living with a parent, got my own job, so it would be wasted money if i did take it out) and i want to open a savings account. I'm currently with co-op and have a current account (not a student one, didn't fancy the overdrafts)with them, but the whole purpose of having the savings account would be for me to save towards things like going on holiday with gf or say, paying car insurance, things like that.

I looked on the co-op website but they have a number of different types, but was unsure which one to go for, due to my circumstances of opening one.

I was wondering if someone with the experience or knowledge would be able to steer me in the right direction.

Thank you very much in advance, i really appreciate it,
Stephen (steisonfire)

VickyA_2

Hi there Stephen,

You may get a better response by putting this question on the Savings & Investments board link here. However, when I was at uni the first time round, I put my student loan each year into an ISA (Mini Cash one), even though I didn't touch it - the interest rate that I got from the ISA was higher than the interest rate that the govt were charging for the loan - so I made a bit of money.

The rest of my "savings" went into an Egg Account, which I managed on-line. I think that they're current Internet only account pays about 5.1% for new account holders. This is gross interest, as I presume you're not a tax payer. Net would probably be 3%.

Also, at the moment, First Direct are offering £25 to people opening one of their accounts - but you have to have £100 at a certain date. Always worth getting, and then closing it when you've got the £25!

Have a look here for Savings accounts rates.

crana999

If you have the discipline not to spend it, it's worth not only taking out student loans to stick in savings but also any 0% overdraft you can get with a student acct.

steisonfire

Thanks guys for the info and the speed at which it came at, i'll have alook into various places and options.

Thanks again both ;D

Stephen