Savings Accounts - Which is the best?

climbintheladderouttadebt

I'm asking on behalf of my boyfriend. He has some savings (I've helped him cut back on his spending and he's doing really well!) in a 'moreformore' account with Barclays - the interest rate appears to be 0.5% - is this good or bad? He has earnt 9p interest, with 1p tax deducted, in 6 months. I earn 3-4p every month just on my current account with A&L!

I am currently reading up on how this savings account works but thought I'd enquire on here to see if anyone could suggest something better?

Many thanks!

System

Have a quick look at the savings guide on MSE.

But quick ideas are

• Barclays have an ISA at just over 2% tax free.
• An non-Barclays account would be a YBS Internet Saver with 2.1% and Cashpoint Card.

climbintheladderouttadebt wrote: »

I'm asking on behalf of my boyfriend. He has some savings (I've helped him cut back on his spending and he's doing really well!) in a 'moreformore' account with Barclays - the interest rate appears to be 0.5% - is this good or bad? He has earnt 9p interest, with 1p tax deducted, in 6 months. I earn 3-4p every month just on my current account with A&L!

I am currently reading up on how this savings account works but thought I'd enquire on here to see if anyone could suggest something better?

Many thanks!

climbintheladderouttadebt

Thanks Heng!

Like the look of the recommendations, will search through the savings guide and check out some companies online. Thank God for 'bookmarks' eh?! lol

:beer:

cbassno3

Hiya, I would recommend the Barclays monthly savings account. It pays 3.25% without withdrawals or 3.20% with withdrawals. All you need to do is set up a standing order each month and pay in between £20 - £250 per month. It pays a fair bit more than other high street banks i would recommend them!!!

climbintheladderouttadebt

Cheers cbassno3!

Will gather all relevant info and get talking with OH at the weekend. The Barclays one looks really good because he already banks with them and paying by SO into the savings account each month would be ideal for him!

:beer:

iereboy

Well done for trying to climb out of debt.

Can I ask, is your boyfriend owing money to anyone? (Overdraft, loans, CC's, Catalogues)

climbintheladderouttadebt

iereboy wrote: »

Well done for trying to climb out of debt.

Can I ask, is your boyfriend owing money to anyone? (Overdraft, loans, CC's, Catalogues)

Thank you wish it built up my leg muscles, though! hehe :rotfl:

OH owes just over £400 on a credit card, which we're tackling now. Plan is to keep up minimum payments via direct debit, then when he is home one weekend a month (he's home more than that but we're never sure when he might not be due to work, if that makes sense!) he will pay £100 online. Ideally, then, it'll be cleared in 4 months.

His mum has paid the Provident loans she took out, we're just waiting for it to show as settled or satisfied in his report now!

iereboy

Great - he's tackling his debts too.

Before you look for the best savings account, pay of the credit card in full.

He will be better of overrall. The interest rate on a savings account is so low, compared to the interest he would be paying back on the credit card.

Once the debt has been paid off, he can then save.

Good luck.

climbintheladderouttadebt

iereboy wrote: »

Great - he's tackling his debts too.

Before you look for the best savings account, pay of the credit card in full.

He will be better of overrall. The interest rate on a savings account is so low, compared to the interest he would be paying back on the credit card.

Once the debt has been paid off, he can then save.

Good luck.

Mmm that makes total sense. We'll go over the budget again this weekend and see when it can be paid in full. Technically I'm sure he could do it now. Then start saving next month. Makes perfect logical sense, given interest rates. Thanks so much for that iereboy :beer:

iereboy

No worries.

One more thing to add. If he is going to start saving, I would advise him to have a Cash Isa savings account as his first savings account.

The benefit of this is that he does not pay tax on this. No one wants to pay the tax man!