Group of Friends Saving Together - Best Bank Account?

bigdic

Hello.

There are 5 of us who wish to start saving a small amount every month (£20 to start) so that every few years we can do something fun for a weekend in a few years time.

Does anyone have any suggestions on the best way to do this? Also any agreements to be signed etc.

Cheers

ehlo

I see you've been here awhile so I hope this doesn't sound patronising
If you open a joint account together then you will become financially linked on your credit reports. This is obviously a bad idea if even one person in the group is less than excellent with managing their money.

Therefore you're left with two options: save in separate accounts or transfer money to whoever is the most trustworthy.

As far as picking accounts goes, you could use your ISAs to get tax-free savings if you haven't already used your allowance. Alternative you can take a look on the best instant access savings accounts. I quite like Intelligent Finance's isaver because it has a reasonable rate and doesn't drop to something appalling after the first year.

You might also want to drip feed money from the instant access account into one or more regular savings accounts which provide a higher rate of interest but only allow deposits of a certain amount per month.

After a year or so you may also want to evaluate tying some of the money into a bond