Jam Jar Accounts and the Universal Credit

krimsun

Morning all

I'm dreading the onset of Universal Credit like a lot of people in my position and the theory of a Jam Jar account seemed attractive.

However (there's always a however these days) - banks charging EACH month EVERY month seems excessive to me. I've looked online and fee's seem to range from £5 to £20 - does anyone know if there is a high street bank or established bank with a free service? Failing that - a one off fee?

I understand they want to make some money but considering those receiving UC will be among the poorest - it seems highly unfair!!!

Thanks in advance for advice
Danny

FireWyrm

With respect, why cant you manage a 'Jam Jar' account yourself? Why would you contemplate paying some fat cat a fee to do what you could do yourself more simply and for free?

For instance, even working and not claiming any assistance from the state, I still have to budget carefully. This means that for me, I quite literally have different pots for different purposes. I dont need to pay someone else to do that for me, a slotted box and some willpower is all that's needed.

krimsun

Firewyrm - because I would like the account to have a Direct Debit/Standing Order facility to save on admin for myself. My main concern is rent - I want that prioritised and paid first. With rents now peaking over £100pw it's easy to get into trouble with payment and it's a lot harder to catch up with arrears.

Such an account would protect that aspect for me.

Kay.Samuels

I don't understand your concern?
Is it that you will have to pay for each individual bank account and that you will only have a low income? I think that's what you mean but I'm having trouble getting going this morning!!

I hadn't considered this, personally I am against banks charging all customers for their accounts and am happy with the current system of charges for overdrafts, late payment fees, etc as I am organised and therefore don't pay anything to the bank!

Have you looked to see if you have a local credit union? I am thinking of opening a couple of saving pots with my local one, and if my current bank start to charge I will vote with my feet and move all my accounts somewhere else.

I can understand your worries, on a low income it is even more important to budget and stay in control of your finances, I think you will just have to think of ways around this such as moving accounts elsewhere if and when charges are brought in, or having some "jam jars" in house, and dealing with cash savings pots instead.

krimsun

My local credit union charge £5pm to run such an account so it's not an ideal option.

My concern is that I need an account to have my UC paid into then for the money to be paid out where it needs to be. A standard bank account represents a risk of charges if I go overdrawn - I have had such problems before.

quintwins

Set your dd up on different days so your rent comes out first.

krimsun

My landlord only offer two different dates.

With all due respect - I've asked for help with Jam jar accounts because I know that will work for me - so multiple answers about other accounts aren't really helping.

Cynical_Monkey

krimsun wrote: »

My landlord only offer two different dates.

With all due respect - I've asked for help with Jam jar accounts because I know that will work for me - so multiple answers about other accounts aren't really helping.

I haven't heard of any banks offering the service for free but look at it this way... If a jam jar account saves you just one late payment charge or overdraft penalty a month then it will have paid for itself.

poppasmurf_bewdley

If you want the service, then you will have to pay for it.

If you can't find a service that you think is value for money, then you will either have to pay up or do without.

It's the simple law of economics.

It's no use coming on here and berating others just because you are not getting the answers you wanted.

krimsun

Fair point Cynical Monkey :T

krimsun

poppasmurf_bewdley wrote: »

If you want the service, then you will have to pay for it.

If you can't find a service that you think is value for money, then you will either have to pay up or do without.

It's the simple law of economics.

It's no use coming on here and berating others just because you are not getting the answers you wanted.

Simple law of economics? Really - I'd have thought that the average bank account is run by banks that see no real return on the persons "investment" (ie. Their monthly wage which is paid in then reduced to nigh on zero for the average joe). Why this can't be applied to this service? Who knows. The government are forcing a scheme on people and as usual not supplying the tools - ie. a government run account which facilitates their new scheme.

As for berating? Re-read my posts, re-read the answers and tell me that this hasn't veered off topic - if I politely ask someone what type of apple to buy I don't want to read about the joy of oranges.

It's not that I'm not getting the answers I wanted (if there are no free accounts, then fine - that is the answer I'm happy with) it's that we're not discussing the topic I started. That's the obvious difference.