Regular savings account

lzcook

Am looking for a second regular savings account (I already have the N&P one) to pay off my credit card when the interest fee introductory offer expires in 10 months' time.

Am looking for an internet one, which rules out the Saffron one and don't want to change my current account which rules out FirstDirect and HSBC.

Any suggestions?

As I will be withdrawing the majority of the cash in 10 months' time, would I actually be better off just putting it into a normal savings account? Happy to continue investing into it after that.

Ultrasonic

I bet you do, but just to double-check, do you also have an ISA for this year?

I've probably just done the same search you have and can't find a suitable regular saver that beats the current best normal instant saver (3.17% @ Post Office).

innovate

Regular Savers often have early withdrawal penalties - generally you need to leave your money in for at least 12 months to get the interest.

MoneySaverLog

You don't have to change your main current account to first direct or hsbc for that matter as you just need to hold their accounts and make sure you qualify for them. All I do is transfer £550 to HSBC meeting their £500 a month requirement and from there 2 SO one to First Direct for £300 to their first account and £250 to the HSBC regular saver.

Works a dream and then get 8% and 6% respectively :-) Neither are my main account. Putting a pound into a First Direct savings account ensures they don't charge you for not funding it with £1500 a month :-)

lzcook

Ultrasonic - yes I do already have an ISA. I don't want to withdraw from that as I'll lose the tax-free wrapper for future years.

MoneySaverLog - thanks, I'll have a look into opening a First Direct account then.

Ultrasonic

MoneySaverLog wrote: »

Putting a pound into a First Direct savings account ensures they don't charge you for not funding it with £1500 a month :-)

The details I could find here (in the section on 'Banking Fee Waivers') suggest you would need need a second savings account (other than the Regular Saver) to avoid the fee, is that what you have?

Ultrasonic

lzcook wrote: »

Ultrasonic - yes I do already have an ISA. I don't want to withdraw from that as I'll lose the tax-free wrapper for future years.

I just asked because for someone who would otherwise get to the end of the financial year without having paid the full £5640 into an ISA, they would be best off putting money into an ISA for 10 months and then removing it.

MoneySaverLog

Ultrasonic wrote: »

I just asked because for someone who would otherwise get to the end of the financial year without having paid the full £5640 into an ISA, they would be best off putting money into an ISA for 10 months and then removing it.

What I'm doing is saving up next years allowance in First Direct and HSBC :-)

Ultrasonic wrote: »

The details I could find here (in the section on 'Banking Fee Waivers') suggest you would need need a second savings account (other than the Regular Saver) to avoid the fee, is that what you have?

Yes, it just sits there with a pound in it

TheSenSibleOne

MoneySaverLog wrote: »

You don't have to change your main current account to first direct or hsbc for that matter as you just need to hold their accounts and make sure you qualify for them. All I do is transfer £550 to HSBC meeting their £500 a month requirement and from there 2 SO one to First Direct for £300 to their first account and £250 to the HSBC regular saver.

Works a dream and then get 8% and 6% respectively :-) Neither are my main account. Putting a pound into a First Direct savings account ensures they don't charge you for not funding it with £1500 a month :-)

So any savings account with first direct means you don't need to S/O £1500 in there every month? I didn't know that.

Could I do this:

Open HSBC current account (the no fee one)

Open first direct savings account and fund with £1

Open HSBC regular saver and fund with £250 a month

Open first direct regular saver and fund with £300 a month

Will this definatly avoid fees? New to this as have only ever had 1 main current account (no others)

Sorry to hijack thread

psychic_teabag

lzcook wrote: »

Am looking for a second regular savings account (I already have the N&P one) to pay off my credit card when the interest fee introductory offer expires in 10 months' time.

Do ensure that any reg.saver you choose does allow withdrawal before 12 months. According to https://forums.moneysavingexpert.com/discussion/608697 neither FirstDirect nor HSBC allow early penalty-free withdrawal. (Early closure means you receive a lower interest rate.)

MoneySaverLog

TheSenSibleOne wrote: »

So any savings account with first direct means you don't need to S/O £1500 in there every month? I didn't know that.

Could I do this:

Open HSBC current account (the no fee one)

Open first direct savings account and fund with £1

Open HSBC regular saver and fund with £250 a month

Open first direct regular saver and fund with £300 a month

Will this definatly avoid fees? New to this as have only ever had 1 main current account (no others)

Sorry to hijack thread

Yes, you have to fund HSBC with at least £500 a month and the standing orders have to go from the bank where the regular saver is kept.

So what I do is transfer £550 by SO into HSBC current account. From there

£250 is paid to the HSBC regular saver
£300 is paid to the First Direct Current Account

Then £300 is paid from the First Direct Current account to the Regular Saver Account.

No fees, 8% and 6% regular savers. Money in the bank, simples.