Help, I need a Saving Account

Short-n-Sweet

Hi Everyone.

I really want to start Saving some money but am so confused by it all. I just want an account where i can put money in and as when i want and it be totally free. I dont want a minimum save limit monthly as some months i have spare cash other times i dont.

I am not even that bothered by interest rates i just need somewhere safe to keep some money, safer than my bedroom draw.

I would like to be able to draw as soon as possible if need be.

My current bank account is with lloyds but for some reason i cannot have a saving account with them so i thought about possibly nationwide?.. Someone also mentioned not to save to much as your taxed on it. This confused me even more.

..and with a regular saving account do you have to save regular or is this just a name haha i know i sound so stupid but i have asked my parents and they are no help at all i dont think anybody wants me to save money!!

amiehall

Are you working and earning more than £8105 a year? If so, I would open a cash ISA. I'd choose an instant access account. That would mean you could add up to £5640 between now and April whenever you liked.

The benefit of the isa is that you pay no tax on the interest. Santander offer good interest rates on their isa as do some of the building societies.

calypso_rhapsody

If you are a tax payer then an instant access ISA is a good plan. Indeed even if you are not a tax payer now but expect to be it may still be a good idea as the tax shelter last as long as you keep the cash in an ISA.

If you are not a tax payer then take a look at the top paying instant access savings accounts - Santander's Esaver 5 is paying 3.2% and has good internet banking facilities.

If your current account with Lloyds would have a balance of between £3k and £5k in it much of the month then converting to a Lloyds Vantage account might be beneficial - it pays 3% on that band (nothing over £5k) .... has the advantage that you don't need to be moving money between current account and savings account.

missile

If you have LTSB current account, I can't understand why they will not permit you to have a savings account?

There are better rates available, but it may be simpler for you to stick to one bank?