How much cash do you keep in an instant access account?

LizzyByTheSea

Yes, I looked at swapping the Nationwide Flexdirect account but unfortunately I know that if my money is in a current account I somehow tend to fritter it away without really meaning too. Frustrating!

Archi_Bald

Apart from a massive gap in interest rates, there is almost no difference between an instant access savings account and a FlexDirect. You have to exercise some self-control, else you will never be able to build up enough for a house deposit or other larger purchase.

Just use the FlexDirect as a savings account and continue with your existing current account as is.

kidmugsy

LizzyByTheSea wrote: »

Yes, I looked at swapping the Nationwide Flexdirect account but unfortunately I know that if my money is in a current account I somehow tend to fritter it away without really meaning too. Frustrating!

They do say that the greatest wisdom is to "Know thyself".

http://en.wikipedia.org/wiki/Know_thyself

iAMaLONDONER

Glen_Clark wrote: »

This is an interesting book. It shows what tends to happen when money is being printed on the scale it is now. The people who had anything left held assets - including shares, not cash: http://www.amazon.co.uk/When-Money-Dies-nightmare-Hyper-Inflation/dp/1906964440
So I look on shares as reliable an emergency fund as sterling.

That book sounds interesting indeed!

PS. Your signature is rather humorous!

jimjames

LizzyByTheSea wrote: »

Yes, I looked at swapping the Nationwide Flexdirect account but unfortunately I know that if my money is in a current account I somehow tend to fritter it away without really meaning too. Frustrating!

My Flexdirect is not my main current account and is just for savings.

Given the hassle that Nationwide give to move money out it isn't hard to not spend it!

dryhat

I keep nothing in any savings account and just enough to pay my bills in my current account.

FatherAbraham

Wilkins wrote: »

It would vary from area to area, though, since maintenance costs are probably not going to vary as much as property prices. However, the sinking fund idea is the right one, IMO.

I use an arbitrary figure of £5k per annum to cover "home and holidays" in my projections, although it does not go into a separate fund.

I concur with your point about property values. In fact, when writing my post, I'd considered saying "a percentage of the insurance rebuild cost", which would be a better approximation.

After all, the quality of the location is prime determinant of purchase cost, but has no real bearing on the ongoing depreciation.

Always looking for better estimation heuristics! Thanks,

Warmest regards,
FA