Which Bank? Graduate with tax-free Earnings.

mattw89

Hi MSE forumers!

I was hoping I'd get some advice towards my own specific situation before I start comparing everything myself in a more focused manner, as it is something I've not really looked at before.

I'm 21, and I've just finished university. So currently I have my standard Nationwide account, as well as a Natwest student account.

I've just accepted a job on board a cruise ship, which will earn me a £33k tax free salary (as I am out of the country for X amount of days)...

So, being 21, and only being home for a couple of months here and there, I'm going to stay at the parents rather than renting, so that I can hopefully save up, get a mortgage and get on the property ladder.

Therefore I was just wondering with the money going into the account, and me having very little spends, accom is paid for, as is food and no rent when I'm home - what is the best way to save?

First of all, will it matter hugely about which standard bank I have my wages in? Does anyone have advice on what banks are generally better than others, or whether I should look to open a graduate account over a standard account?

I also pay £50 p/m into an F&C investment trust, so I think I may up this. But I thought in the short term, with a fair bit of money (for me anyway), the best way to try and maximise it's value rather than just having it sat there in say my natwest student account.

Any pointers welcome!!
Matt

onlypaddy

I would avoid a graduate account unless you need the usual benefits - interest free overdraft, graduate credit card etc. From the sounds of it you wont. You may find that your natwest student account is automatically changed into a graduate account anyway.

For general banking, the bank with the best feedback and general customer happiness is First Direct. Also, as you will pay in over £1500 a month then they will give you £100 for opening an account. Santander have a similar offer which offers the £100 with a 5% interest rate, but general opinion says they're pretty pants.

As for a savings account, you can open any account (just look for highest interest rate) but will need to fill in an R85 form and show that you qualify for tax-free interest. With a salary of £33k, this will be difficult - it will involve showing that you are not normally resident....I'm not sure if you can do it, you might have to ask your employers to help.