How much to keep in current account?

getmore4less

Buzzybee90 wrote: »

No. I am just asking how much I should have readily available, of course the savings can be moved around but on a card if I need it.

So I suppose an emergency fund but more, how much not in savings.. If that makes sense! Other than transport, food and stuff which comes from the joint acc.

Or should I just put as much as possible in the savings?

If it is emergency cash flow

If you want instant access to funds it does not matter which account they are in if it is instant access.

if access in short time(up to one month say to pay off a bit extra on a CC) then it does not have to be instant access.

Most cards give around a month to find the actual cash so if you have a big surplus you just stop saving that month or take a hit on any accounts that have penalties.

I use premium bonds which are accessible in days in case any big bills need paying stick them on the card and cash in some bonds if other money not available.

maman

Yorkie1 wrote: »

It also depends on how much the interest rates are. I have a Lloyds Vantage current account which pays 3% as I have £3k in it. There's no point in putting into a poorer interest rate savings account.

That's what I have although I think there may now be better accounts asking for smaller monthly deposits with even better interests rates.


To answer OP's question, I'd say that you need to put all you can into savings in a place where it gets most interest. I can understand that you might need easy access if it's to double up as your emergency fund. So, assuming you don't want to tie it up for a number of years I'd go for a cash ISA, followed by a current account each for you and your partner that pays good interest when in credit (assuming you NEVER go overdrawn).




Check out the savings section of this site, it'll give you all the info you need.

Buzzybee90

maman wrote: »

That's what I have although I think there may now be better accounts asking for smaller monthly deposits with even better interests rates.


To answer OP's question, I'd say that you need to put all you can into savings in a place where it gets most interest. I can understand that you might need easy access if it's to double up as your emergency fund. So, assuming you don't want to tie it up for a number of years I'd go for a cash ISA, followed by a current account each for you and your partner that pays good interest when in credit (assuming you NEVER go overdrawn).


Check out the savings section of this site, it'll give you all the info you need.

Thank you. Yes I've never had an over draft or credit card (I know I should get one for little regular payments). One of the savings is locked in, one is an ISA and the third is a Save to Buy account from Nationwide. I really can't think of something that'd require a big emergency fund as no car etc so that's positive. I'm really proud of how we are doing as ZERO of our friends have any savings over a couple of hundred!

Just upgraded one of the current accs to really good interest, so should probably use that one for 'holding'

Thanks everyone!

Mojisola

It's worth having accounts with more than one company so that you can still get money out if one computer system goes down.

maman

Mojisola wrote: »

It's worth having accounts with more than one company so that you can still get money out if one computer system goes down.

Good thinking, that seems to be getting more common now.


And if you ever get to the dizzy heights of £85 000 savings then you shouldn't have it all with one bank.

Mojisola

maman wrote: »

And if you ever get to the dizzy heights of £85 000 savings then you shouldn't have it all with one bank.

One institution - keep up-to-date through Martin's info -
https://www.moneysavingexpert.com/savings/safe-savings

maman

Mojisola wrote: »

One institution - keep up-to-date through Martin's info -
www.moneysavingexpert.com/savings/safe-savings

Of course you're right, I think it's about having separate banking licences.

Hermia

Buzzybee90 wrote: »

Thank you. Yes I've never had an over draft or credit card (I know I should get one for little regular payments). One of the savings is locked in, one is an ISA and the third is a Save to Buy account from Nationwide. I really can't think of something that'd require a big emergency fund as no car etc so that's positive. I'm really proud of how we are doing as ZERO of our friends have any savings over a couple of hundred!

Just upgraded one of the current accs to really good interest, so should probably use that one for 'holding'

Thanks everyone!

Emergencies tend to be things you can't think of! When I was burgled I had to call out an emergency locksmith and glazier and they would only accept cash or a cheque. I was very happy that I knew I had the money in the bank.

Mojisola

maman wrote: »

Of course you're right, I think it's about having separate banking licences.

So glad we've got Martin and the team laying out all the info for us.

I didn't know about the double protection for joint account holders.

hgotsparkle

I don't even have emergency money because I can't afford to so I envy you there! I just about scrimp by on my pay every month!

I would say it depends on what you can afford to put aside, I can't so I don't.