Do they Credit Check for an ISA/Savings Account?

[Deleted User]

Quick (and possibly daft) question.

If you go to set up an ISA or other Savings Account, do they do a credit check?

If so, could a bad Credit Rating prevent you from setting up said ISA/Savings Account, or limit access to the higher interest ones?

Robin_TBW

No.

But you'll be best paying off your debts first.

[Deleted User]

I know I should pay my debts first.

I'll be DF around August (fingers crossed), and plan to put £200 pm into an ISA/Savings Account, to pay for insurance (car and home), MOT, servicing, Road Tax, and a holiday.

badger09

Bedsit_Bob wrote: »

Quick (and possibly daft) question.

If you go to set up an ISA or other Savings Account, do they do a credit check?

If so, could a bad Credit Rating prevent you from setting up said ISA/Savings Account, or limit access to the higher interest ones?

No there will be no credit check, but there will be an identity check for money laundering purposes.

In principle, a bad credit history will not prevent you opening a savings account or limit access to the higher interest accounts, EXCEPT that at the moment, the highest interest instant access accounts happen to be current accounts with Santander, Lloyds & BOS. A bad credit history would limit access to these.

[Deleted User]

I already have a current account with Lloyds.

Are you saying I can get more interests, by putting my £200 pm into my Lloyds current account, than by putting it into an ISA?

innovate

Bedsit_Bob wrote: »

I already have a current account with Lloyds.

Are you saying I can get more interests, by putting my £200 pm into my Lloyds current account, than by putting it into an ISA?

They do beat some, yes, even for basic rate tax payers, with the Vantage option on current accounts.

Though you can still get slightly better interest in a good ISA - check first post in this thread https://forums.moneysavingexpert.com/discussion/401374

I would agree with others, however, it's probably best to pay your debts off before you start saving. I assume you pay more interest for your debts than you'd get on your savings.

Also, if you do save £200/mth, check out the First Direct Regular Saver - it beats anything in the market hands down with 8% AER. Use it to save up a lumpsum for an ISA. Though you need their current account for access to this saver (and nothing else), and they are picky about credit file records.

[Deleted User]

innovate wrote: »

I would agree with others, however, it's probably best to pay your debts off before you start saving.

I intend to.

I assume you pay more interest for your debts than you'd get on your savings.

I do.

I don't think the First Direct Regular Saver thing will work.

I won't be able to save up a lump sum, because what I'll be paying in, will be drawn out again, at intervals throughout the year.