What would be the best type(s) of bank account(s) for me?

JoshuaOrr

I am a 17-year-old student about to start my second and final year at college, and just starting to think about University and the like. I currently have a HSBC Young Savers account, the details of which I do not know much about.

I'd like to open two bank accounts; one that I can have access to at any time via an ATM and have the money from my job paid straight into it; and a savings account (ideally one with high interest) that I can use to save money for University. I would set up a debit between the two accounts so my savings account has a certain amount put into it every week/month.

I'm not really familiar with banking stuff and monetary matters, this is my first proper venture into sorting out my money - I have just got a new part-time job, and with all my old jobs I just had the money paid into my HSBC account. So any abbreviated terms used like ISAs or whatever would need to be explained for me. :P

So, could anybody tell me what types of accounts would be best for me, and where I could currently get the best ones?

Any advice, help and telling me what a noob I am is greatly appreciated.

Thanks in advance.

JoshuaOrr

CLAPTON

Its probably best for you to have :

a. a current account with a cash card (or solo / electron) so you can withdraw cash from ATMs

b. and a 'linked' savings account with the same bank so you can move money instantly using online banking.

unfortunately HSBCs linked account is not really very flexible as, if you make a withdrawal they pay no interest on your entire savings for that month (a very bad deal).

While not necessarily paying the best rates, Nationwides portfolio of current (Flexaccount) account and linked esaver are quite good and are flexible accounts thats allows instant online transfers between them.
Also once you are 18 you can get a proper debit card that has no costs if used abroad (most charge you 2 or 3 % for foreign usage).


Make sure you fill in a R85 form so your interest is paid gross and not net (i.e. with tax taken off). (check you bank statements showing your interest to see if they have deduced tax)

gt94sss2

JoshuaOrr wrote: »

I'd like to open two bank accounts; one that I can have access to at any time via an ATM and have the money from my job paid straight into it; and a savings account (ideally one with high interest) that I can use to save money for University. I would set up a debit between the two accounts so my savings account has a certain amount put into it every week/month.

HSBC actually have an account called MyMoney for your age group which does exactly what you want.

As already said, make sure you fill in a R85 form if you are entitled to have your interest paid gross (it depends how much you will earn each year)

For longer term cash savings consider an ISA (Individual Savings Account) - these are accounts where the interest is also (automatically) paid tax free and where you are limited to paying in £3,000/year.

A good one is run by National Savings.

Regards
Sunil