Holiday fund for a joint account - pls suggest a suitable savings account

Nine_Lives

Looking for help for my mother. I thought i'd asked about this account before but can't find anything.

She has an account with her friend. It's a holiday account that they'll cash in within the next 3 years or so & then go on holiday together. This is the reason i'm looking to help them:

Interest = 0.10% Gross Calculated daily and credited to the account on or paid in to another bank/building society current account by 31 December. Interest Warrants are only paid out of an account if their value is equal to or over a £1.00.

Bonus = 0.75% Gross A bonus is also calculated daily and will be added to the account if a monthly deposit of between £20 and £5,000 is credited to the account for 11 out of 12 months and the withdrawal terms affecting the bonus are adhered to. The bonus will be applied at the end of the 12th month.

Current balance: £2820.52
They pay in a combined £30 each month.


As you can see, the interest rate is appalling.

My mother is a non tax payer whereas her friend IS a tax payer if that sways your account suggestion.


I was thinking AA for 1year at 2.80% or whatever it is (can't remember without looking), but would you suggest anything else?

Consumerist

Unfortunately, The AA's Internet Extra (Issue 3) account does not accept joint accounts.

AA Internet Extra (Issue 3) account is unavailable to joint account holders. If you wish to open an account that is to be operated by Power of Attorney, please call our AA Savings Team for more information.

You might want to take a look at the West Bromwich BS Direct Bonus account 1 which pays 2.92% AER (including a 1.00% bonus up to 31 January 2011) and allows joint accounts. A minimum balance of £1,000 is required, so that's no problem. There is also a restriction of 3 withdrawals per year without penalty. The account is accessed by phone or post so no internet access is required.

You may need to look for a better rate elsewhere after the bonus expires in Jan 2011.

Hope this helps.

Although, of course, I am happy to help, I don't understand why you couldn't have found this for yourself from the MSE Savings page.

Nine_Lives

Because knowing my luck i'll have missed some important fine print or whatever & not understood something right, so i wanted to check in with the experts.

I don't know whether my mothers friend would have a problem with the account just being in my mothers name or what. I'd have to ask on that one.

Thanks

Consumerist

The West Bromwich BS Direct Bonus account 1 does accept joint accounts.

You should, anyway, check for yourself to make sure that any account that is opened meets your requirements.