I have £10,000+ in a Current Account, help!

EltonJohnFan

Hi all,

As the title of my post suggest, I'm currently in a very sticky situation because I've never had a savings account before and have been pestered constantly about opening one of those and also to think about upgrading my "Key Account" which is held with RBS to a "Royalties Gold" account but, in truth, I'm happy with the account I have as it meets my needs but I just don't like that it no longer offers any interest at all as I do know my money is shrinking with inflation (3.3%?) and opening a savings account of some sort should be my priority at this moment in time. I've looked at having an ISA with RBS but the rate of return is so poor that I honestly wouldn't even consider this as a viable option and from what I can see, all of the RBS rates of return seem to very low and minimal at best and it doesn't seem like they're eager to attract savers either.

Now, I'm almost certain that I don't want to approach another bank because I like all of my services to be in the one place and, because I have disabilities/extra needs which mean that I can get very stressed about certain things and so this is why I've spent the last hour or so looking through what RBS can offer me savings wise and I'm not impressed, at all. The best account they seem to offer is a "Direct Saver" account which pays just 1% Gross and a very big annoyance for me is that all of their accounts pay only annual interest... why should I have to wait a whole year before seeing a return on my investment? I find this very lazy on their part because surely it can't be that hard to offer monthly interest to people that want it?

I've been repeatedly asked to attend meetings with financial advisors but this isn't something I particularly want to do as I know they'll try and sell me things I neither need nor want and I already have a firm idea of the sort of account I'd like. I want a savings account that will offer me a bank card to be able to access my money if required, instant access, monthly interest and a fair rate of return and not the pittance that RBS is currently offering me and yet I seem unable to find an account of this sort. I was, however, asked to open an "Instant Access Savings Account" by the bank but this pays only 0.10% and unfortunately it seems to offer only annual interest too. I understand that I may have to look elsewhere but could you tell me more about my options? I'd probably move my Current Account at the same time because as I say I need to have everything in the one place and don't want the hassle of remembering too many things at once. Thank you very much and take care

ses6jwg

I can understand the simplicity of wanting to keep things in one place but doing this plays right into the hands of the banks who prey off customers such as yourself who mistakenly believe their "loyalty" will be rewarded.

I would suggest setting up a folder and keeping all account details in one place. Most savings accounts can be opened, and the deposit made and left for 12 months so their isn't much "management needed so to speak.

I'd reccomend straight away putting £5100 into an instant access ISA with Santander or Halifax.

Then if you don't need access to the rest pop some into a 1 year savings bond or instant access account, again Halifax and Santander are competitive for these, RBS have a 2 year bond atm as well.

jen245

I thought you were switching to Barclays? But as above, you have £5100 tax free savings allowance for this financial year, which you can deposit into an ISA. I have a Halifax Direct Reward ISA at 3% as I have a current account with them, for non current account holders, the rate is 2.8%. You dont really have to do anything, you just apply for and open the account, which can be done online, deposit your cash, leave it and let it earn you interest. If you dont mind tieing your cash up for a bit longer, there are fixed rate bonds. Natwest are offering one paying 3.5% for 2 years on balances of £5000+, but I think you have to have another account with them. Have a look here for the different savings accounts best buys http://www.moneysupermarket.com/savings/

jennifernil

You can open accounts on-line, and supply ID (if requested) by post if you don't like to visit a branch.

Personally, with £10k, I would just open 2 x Lloyds Vantage accounts and put £5000+ in each. By moving £1k between them each month you would earn 4% (less tax), interest paid monthly. You can open the first one on-line, then once it is up and running you need to do the second by phone or in branch.

These are current accounts, so there will be a credit check done. And you will get debit cards too, so you could just use one as your main current account, but if you go below £5k the rate drops to 3% on £3k to £5k.

Another option, if you haven't got an ISA, is to open the Halifax one that pays 2.8% at present, that will take care of £5100. If you also move your current account to them you will get 3%. And their current account will also pay you a £5 Reward each month, but you do need to deposit £1k each month.

Then you could put the rest into a LLoyds Vantage, and swap the £1k between it and the Halifax.

If you want to tie up the money for a bit then look at fixed term accounts, which will give you a fixed rate too.

moonwatcher

I agree with jennifernil. I have a couple Lloyds accounts and a couple of Santander accounts with automatic payments set up to move 1000 around each month to satisfy the minimum income requirements.

With Santander you can get 5% on up to 2500 (with maybe 100 bonus for opening the account) and the Lloyds will give you 4% for balances between 5000 and 7000.

The first time home buyer from Santander is a good one too at 5%. You can put 5000 into that at the start and up to 300 each month.

Seems crazy that to get a decent savings rate you should use current accounts.

rb10

moonwatcher wrote: »

With Santander you can get 5% on up to 2500 (with maybe 100 bonus for opening the account)

£150 if you apply through Quidco. (Well, £145 after their admin fee).

EltonJohnFan

jen245 wrote: »

I thought you were switching to Barclays? But as above, you have £5100 tax free savings allowance for this financial year, which you can deposit into an ISA. I have a Halifax Direct Reward ISA at 3% as I have a current account with them, for non current account holders, the rate is 2.8%. You dont really have to do anything, you just apply for and open the account, which can be done online, deposit your cash, leave it and let it earn you interest. If you dont mind tieing your cash up for a bit longer, there are fixed rate bonds. Natwest are offering one paying 3.5% for 2 years on balances of £5000+, but I think you have to have another account with them. Have a look here for the different savings accounts best buys http://www.moneysupermarket.com/savings/

Hi Jen,

I've had a few personal problems in my life which means a lot of things have gone wrong of late but not to worry though, I'm alright now. I've been searching all night long for a good option to save and I think I may just have found it and hopefully, it'll work out for me. Thank you very much for your continued support, helpful answers and take care

DrSyn

EltonJohnFan

From your post I get the impression you want to aviod stress. I can only suugests the follwing.

1. If only half of the posts on this form about Santander are true, then maybe you should aviod Santander, no matter what the inducements are.

2. If you are happy about staying with RBS tell them to, formally put on your record with them, you are happy with the current account & to stop pestering you about your £10,000 balance. That if they continue you will make a formal complaint in writting to their chief executive.

3. You could switch to "First Direct" or the "Co-op" bank. Both always get over 80% satifaction ratings from their customers.

4. You could look into LLoyds current account linked to their Vantage account as suggested here.

5. For best savings rates you may need to go elsewhere.Top rates
can be found on this site and on www.thisismoney.co.uk . Just make sure they are covered by the new £85,000 protection limit.

ultrawomble

jennifernil wrote: »

Personally, with £10k, I would just open 2 x Lloyds Vantage accounts and put £5000+ in each. By moving £1k between them each month you would earn 4% (less tax), interest paid monthly. You can open the first one on-line, then once it is up and running you need to do the second by phone or in branch.

Actually, you can open the 2nd and 3rd accounts online as well - no need to spend time on the 'phone or in a branch.

jennifernil

That seems to vary without any logical pattern. I tried several times to open a second/third account on-line without success. Other people have managed it, but they seem to be in the minority.

It is less stressful just to ring them, there is even a freephone number.

pauljoecoe

I don't know if you have a mortgage but one way would be to get a offset mortgage/current account with First direct. That way the 10K is saving you mortgage interest payments which are gross interest rates not taxed.

Also it means everything is in one place and simple -works for me!