Need some advice on which Bank is best for me

Ian1918

Hi,

This is my first post on the Forum and I was hoping you may be of some help. I currently bank with Natwest (have done since i was a kid) but now i live in the North of Scotland there isnt a branch for hundreds of miles so i need to change, also my circumstances are about to change quite drammatically.

I have just been made redundant after 15 years with a company and will have around 70K to put away - i need to be able to access this money to put it down as a deposit on a mortgage in 6-12 months time.
Also as my new job is abroad (i will still be living in the UK albeit flying abroad regularly) i will be geting paid in a foreign currency . I will also have to arrange for tax and national insurance as i will not be PAYE. So my questions are this:-

Which High street bank would you recommend for a decent joint current account, savings account and i would need a separate saving account to put my tax savings in ?

I will be maxing mine and my wifes cash ISAs for this tax year and next but was thinking of buying a 30k premium bond as saving accounts are so rubbish at the moment. What would you do in this position?

Thank you in advance

BugsyBrowne

Stick your savings under your bed if I was you don't let the banks rip you off with their pi*s poor interest rates while earning loads off your cash.

xylophone

You might have a look at HSBC for general banking.

http://www.moneysupermarket.com/savings/

Manchester BS Platinum Instant Isa might suit
http://www.themanchester.co.uk/mbsnew/savings/content/savings_accounts__isa.asp

Premium Bonds? A bit of fun but you might as well be certain of a return if you are planning to buy a house.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/LeavingOrComingIntoTheUK/DG_10026136

innovate

Ian1918 wrote: »

I will also have to arrange for tax and national insurance as i will not be PAYE. .....................................

I will be maxing mine and my wifes cash ISAs for this tax year and next...................

Unless you are 100% positive that you are not taxed in your country of work (sounds likely if you get paid in foreign currency), you should ask the HMRC or an accountant about your tax situation. Being resident, ordinarily resident and domiciled is incredibly complex.

This may also impact whether you are entitled to an ISA whilst you are working abroad / paid from abroad.

http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm

Ian1918 wrote: »

but was thinking of buying a 30k premium bond as saving accounts are so rubbish at the moment.

Now that doesn't seem to make much sense - - Premium Bonds return, on average 1.5% per annum. Of course, they could equally well return nothing, or a lot more. You should be able to find several savings accounts that pay out more than 1.5%, even if you and your wife were both higher rate tax payers - - and, as per above, are indeed liable to UK tax whilst working abroad.

piemaeu

I'd go with a high street bank that offers offshore accounts in the currency you will be getting paid in. Preferably with banks based in that country so you will get your salary quickly. Also they will be able to give you tax advice and financial planning and help you secure a mortgage.

dalesrider

Ian1918 wrote: »

Hi,

This is my first post on the Forum and I was hoping you may be of some help. I currently bank with Natwest (have done since i was a kid) but now i live in the North of Scotland there isnt a branch for hundreds of miles so i need to change, also my circumstances are about to change quite drammatically.


Thank you in advance

I take it that you are wanting a branch that you can go into then? Someone mentioned HSBC. I think they have a max of 6 in Scotland.
So if its a local branch you need then that will be down to you. Unless part of your plan is to move south.

But you could still maintain a 2nd account online ( as I guess you do now) and use that as the remote banking/savings. Transfering to branch account to keep it in credit for daily use.

If you are looking at working abroard for a while. Trying to get a account in that country maybe a good idea. Could certainly mean less issues in terms of getting cash and lack of security checks while overseas.

As to premium bonds.

Heads you win, tails you lose. But at least you get your stake back.

innovate

dalesrider wrote: »

As to premium bonds.
Heads you win, tails you lose. But at least you get your stake back.

You don't, actually, get your money back normally (unless you win big time, which most people don't). The average return is 1.5% AER. Inflation runs at something like 2.5%, and will only go up with things like the pensions legislation that came into force today, and rising food costs because of the recent terrible weather not just in the UK but worldwide.

So the vast majority of PB holders will lose money (just to add, I am a £30K PB holder myself, but I fully appreciate the facts around them, and the PBs aren't all the money I hold).

piemaeu wrote: »

I'd go with a high street bank that offers offshore accounts in the currency you will be getting paid in. Preferably with banks based in that country so you will get your salary quickly. Also they will be able to give you tax advice and financial planning and help you secure a mortgage.

I'd go with the bank that offers me the best deal for whatever my current needs are. With online banking & phone support, the concept of having "my bank" has gone out of the window a long time ago for me. Add to this that literally no bank will give you brownie points (or anything else) for being a long time customer. Though there are one or two exceptions creeping in now - e.g. Nationwide only offers certain advantageous accounts to people who meet certain requirements. These 'certain requirements' can be met in max 3 months flat, though - - - so I maintain, trying to build a long-standing relationship with "your" bank is just a complete waste of time. Just pick the best deals you can find at the time. Now start reading that paragraph all over again....

Ian1918

Thanks all for your suggestions, im going to be working for a UAE company based in Dubai, but remain based in the UK around 220 days a year away. It will mean travel throughout the Middle East, India and North Africa but as the Company is UAE its free from income tax locally - but will have to pay tax in the UAE - ive figured that i can pay Cat 3 National insurance which is a bonus. Will probably looking at Bank of Scotland / Nationwide. The big thing for the saving are that i will need access to them when i go for a mortgage im guessing this will be in about 6- 8 months time. I guess ill get on to money supermarket and start looking !

Thanks all

innovate

If you (and your wife) stay a UK resident for tax purposes, you can take advantage of just about all the "great" (relatively speaking) deals around now:

1. you (and your wife) keep your entitlement to ISAs
2. you (and your wife) can do the monthly Halifax £1K deposit for the £5/mth after basic rate tax
3. you (jointly) can look into a Santander 123 current account - you can get cashback for opening it, and then get cashback & interest every month, much more than the £2/mth account fees
4. check out the First Direct Regular Saver and the Nationwide Regular Saver for yourself and for your wife. They both pay more than an ISA, even for higher rate tax payers. You save up a lump sum in those Regular Savers, then empty them into your ISA, and start new Regular Savers. Some hoops to hoop through, but nothing that can't be done. Regular Savings Calculator helps you figuring out exactly what you could make.
5. Lloyds currently pay 4% AER until 31/10/2013 on Vantage accounts if your balance is between £5K and £6K. You can have 3 accounts each - - so that's a home for £36K between you and your wife.
6. you must keep an eye on all your savings because rates change regularly, and you need to move your money regularly
7. apart from savings, incl a 'permanent' 6-month instant access kitty in case of emergency, you also need to have solid provision for your older days - - commonly known as a pension. I assume you are fully on top of this but if I am wrong, I would suggest you talk to an IFA asap.

From the above, it should be evident that there's no concept of "my bank" if you want to make the best for yourself

dalesrider

innovate wrote: »

You don't, actually, get your money back normally...

You put 1K in, you can withdraw 1K at any point.

So PB's are the only form of gambling where you get back your stake money.

Yes, unless you win. you don't make anything and over time the 1K is actually worth less.
But you do get it back.