OK, this maybe obvious but...

Stuey74

I want to save money each month, at present I'm finding I have a few hundred pounds left at the end of each month. Should I put all this straight into a savings account? This sounds obvious I know, but i somehow feel secure with a bit of cash in my current account.

tell me, I'd be right to save it, i think I just need re-assurance

Al_Mac

You'll be right to save.

Although you want get the best rate, you could always have the saving account at the bank you are with, which will give you instant access. Then when you've got enough to calm any fears, open up a better one elsewhere at a better rate.
:beer:

grumbler

Easy-access savings are almost the same as cash on your current account! The only difference is interest...
SAVINGS section
Starting Saving...the ‘Savings Fountain’ article

virgin_moneysaver

if you've got a couple of hundred spare each month - I'd personally put it into a mini cash isa - you don't pay tax on the interest & it's instant access so if the unexpected happens you can transfer the neccessary back to your current account - this can be done either at the branch, over the phone or online (which I do all the time) - you can get roughly 4.5% tax free at present

Walletwatch

VMS

I largely agree, but I'd put everything except the amount that I know for a fact I would definitely need to withdraw, as I wouldn't want to effectively lose out on my ISA allowance to that extent if I could help it.

Justin_Credit

Like Stuey74 I like to have cash at the ready just in case.

I have an e-saver account with the bank that I have my current account with. I am keeping my 'just in case' money of £500 in that, ready to be transferred, if necessary, to my current account immediately.

All my other savings then go into my Mini Cash ISA which is held with a different provider.

Seems ideal for me but we all have our different methods.

Regards

JC

virgin_moneysaver

walletwatch - I know what you're saying - I mean I transfer in to it online rather than out of it - no point in stripping the c/a too much otherwise the 3k limit will be null & void before long - I was just trying to point out that it was easy to access & manage

kazzy

you could always give it to me!!!!!!!!!!!!!!!Just a thought Hahaha

dag_2

I largely agree, but I'd put everything except the amount that I know for a fact I would definitely need to withdraw, as I wouldn't want to effectively lose out on my ISA allowance to that extent if I could help it.

I'd agree with that too.

This amount that you know for a fact you would definitely need to withdraw can be put in a normal savings account - so it still earns more interest than in a current account, but doesn't count against your ISA allowance.

The only money you need in your current account is that which covers your next week or two's pre-scheduled bill payments and direct debits. Any money which isn't needed sooner than that can be put into a savings account.

Kazza242

Stuey74 wrote:

I want to save money each month, at present I'm finding I have a few hundred pounds left at the end of each month. Should I put all this straight into a savings account? This sounds obvious I know, but i somehow feel secure with a bit of cash in my current account.

tell me, I'd be right to save it, i think I just need re-assurance

Stuey - I don't think it's a good idea to transfer all of your remaining current account balance into a savings account. You are right to be cautious. I always leave a cash buffer in my current account just in case I need emergency access to cash or a DD comes out. I sweep any funds above the cash buffer into my linked savings account.

Once you've got a reasonable cash buffer in place, I think it would be a good idea to open an e-savings account with the bank that holds your current account. You'll be surprised how quickly your monthly savings build up .

Two other things though. If you do need to hold a large in credit balance in your current account, then make sure your current account pays a decent rate of interest. Too many banks are paying 0.1% interest and getting away with it. Also make sure you have an agreed overdraft in place, just in case.