Second bank account for savings

khw

Hi there - thought I could get some good advice here, so here goes.

I'm not the best at saving. Although in theory I know I could save £600-700 pcm from my salary - my present rent in a houseshare's pretty cheap - it never works that way.

In order to force myself to be more responsible, I want to move my present savings into another account, and basically just ensure my salary is in my present account. This means I would have a clearer picture of how much is being deducted from my salary each month with outgoings. Usually what I think I can save on paper never works that way. Anything saved goes into the other account, etc.

Just wondering then, what's the best thing to do with say, £5000, if I intend to add another £600 say pcm to it for the next few months. I will want access to this money, so I know some higher interest accounts don't like you to fall under a certain amount of savings.

Also, I might be going to the US this Summer and also moving into a flat where my savings pcm would be much less, which is more incentive to become more responsible with money. Any ideas?

jennifernil

You should be able to find a savings account that will pay at least 3%.

Do you have an ISA? If not, you could get 3.1% from Nationwide, you need to open a "card account" with them too (you don't need to actually use this account afterwards).

If you want to save monthly, First Direct offer 8% on up to £300 pcm. again you need to open other accounts with them, but that is easy. There are other regular savers around, but don't agree to any monthly amounts you cannot keep up for the required period.

A good way to start is to prepare your monthly budget of essential spending, allow a little extra for pocket money, then set up a standing order, or make a manual transfer, for the surplus. Then try not to withdraw any of it till you need it for a "one off" expense, e.g. something you only pay once a year.

calypso_rhapsody

Do take a look at the savings link in the band at the top of the page ... lots of good advice there! But i agree with jennifurnil's advice ...

Another thing you might think about is opening a Halifax Reward current account and transferring £1k each month into that (and out again to your savings account or even your salary current account) - you get £5 (after basic rate tax) per month for the effort .... which isn't too great!

Only suggestion i'd make is to do the SO to make transfer near the beginning of the month - if you have it near the end you can get caught out with weekends and things!