Sacka's Savings Log

Sackagold

This is my log, there are many like it but this one is mine!

I've decided it will be best to get my saving's plans and actions written down here for two reasons a) clarity's sake and b) input from you clever people. For the time being my goals are simply to get into the habit of saving, taking control of my finances, and to stop wasting money!

For what it matters I'm 25 years old and I'm planning on working overseas for the next year or two. I currently have around £2800 to put away before I depart. Here's what I'm thinking of doing after spending the last couple of days reading stuff here:

• Opening a Regular Savings Account with Santander. £250 a month @ 6% depending on opening a current account.
• Opening a Current Account with Santander. Transfer of my current Barclays account to Santander @ 5% on up to £2500 plus £100 reward for doing so. Dependant on £1000 income each month. This account will feed the Regular Savings Account.
• Finding another Current Account. To have the constant income into the Santander I will set up standing orders between two accounts to cycle £1000. This other account could be another current account or a savings account. I'm not sure.
• Opening an ISA for whatever cash is left of the £2800. My original plan was to open two Regular Savings Accounts thus saving £500 a month but unfortnately only 1 per customer is allowed so, instead that extra £250 can be stored inside the ISA.

Now, I have a credit card with Barclays which I don't use. There's a limit of £1600 I think, depending on whether or not there's interest on that I could use that money now for the ISA to gain more interest and use the extra ~£250 a month to pay the credit card. I also need to look at point 3 above, the opening of another account...I'm not sure whether or not it should be a savings account or a current account considering I'll need access to the cash as it'll be used in the cycling of the £1000. I'm also not sure if to have £2000 cycling so as to have £1000 in each account at all times to be earning interest...



p.s. Currently looking at the Best-Buys so will post a clearer picture soon. Still a bit confused about Santander's minimum £1k. Could I put 500 in, take it out and put it back in again? Is that still valid? Does that also mean I could put £10, in out in out x100 = 1000?

Sackagold

Second thoughts. Due to Santander's current reputation, and considering I was looking at opening 3-4 accounts with them I think it'll be too risky to trust smooth operations from them whilst I'm away and for not much profit either.

Instead, I'll go the fountain way. Open an ISA now for a lump sum of around £2k, and fill it before April 5. And then work on 2011/12's ISA allowance. I see there's one with Principality for 2.8% with a further 1% after 12 months...

cashbackproblems

I personally would avoid Santander/Abbey for any account even if they paid 100% interest! Tried opening accounts with them b4 for myself and family and never encountered ppl so incompetent!

Not really much to say as you have a fairly small amount which doesnt even fill up an ISA so tht would be your first option. As you dont have the cash reg savers are great, i have ones with hsbc, barclays and halifax all 250 per month. Also your suggestion about using the credit card to put into isa, i didnt think you could transfer money from credit cards like tht?

Sackagold

cashbackproblems wrote: »

I personally would avoid Santander/Abbey for any account even if they paid 100% interest! Tried opening accounts with them b4 for myself and family and never encountered ppl so incompetent!

Not really much to say as you have a fairly small amount which doesnt even fill up an ISA so tht would be your first option. As you dont have the cash reg savers are great, i have ones with hsbc, barclays and halifax all 250 per month. Also your suggestion about using the credit card to put into isa, i didnt think you could transfer money from credit cards like tht?

I think the key thing with my situation is that I'll be earning overseas for the next year or two, possibly longer. I did originally look at doing a reg saver but I'll have to pay charges on international transfers, and it doesn't prove worthwhile. Plus I'd be reliant solely on online/telephone banking - another reason I'm avoiding Santander.

So that's why I'm thinking simpler and opting for the ISA, I'll deposit 2k now and will aim to have 5100 in by April. It's just a question of whether or not to go for an easy-access ISA or to lock the cash away for 1-2 years. Decisions decisions.

I don't think the credit card thing was too good an idea either .