what savings account?? help

pma13

Hi All
need some advice. I need to open an account to put in a sum of money that I have received (only 2,500). (not putting in bank as I know Ill probably be tempted use) I am a bit confused as to what to do.

Either using it to start deposit to buy a house or paying debts off. Clearly I know the debts is best. The reason iam not paying debts off firstly is Iam going to get final settlement offers? and I am also still looking if I can claim bank charges as looking at my accounts i was extortionately charged on some. So this may be an option to try and barter some of them down? The money wouldn't clear debts but would help reduce.

Furthermore Do any particular accounts help to make you look more appealing to lenders, I have seen a Halifax one for first time buyers but with my credit rating iam thinking is it worth it when they probably wouldnt consider lending to me anyway in the future??

Apologies if I sound a bit dense/ confusing! but need advice x

CreditCrunchie

I'm not sure the save to buy options with any banks are worth it. Nationwide point blank told me it's just another way of saving and does not in any way guarantee a mortgage offer.

Currently the best place for your £2,500 if you intend to keep it all is the Nationwide Flexdirect which pays 5% for this amount but only last for a year so set a reminder on your calender and switch accounts in 12 months.

innovate

Best to pay off your debts before you think of savings and house deposits.
You are kidding yourself if you think you have £2,500 as long as your debts are more than £2,500. Your debts will cost you way more than the interest you would get anywhere.

pma13

thanks both

Inovate- didn't quite understand that sentence

You are kidding yourself if you think you have £2,500 as long as your debts

jimjames

pma13 wrote: »

thanks both

Inovate- didn't quite understand that sentence

You are kidding yourself if you think you have £2,500 as long as your debts

If I have debts of £10,000 and £2000 cash in the bank as savings then I am misleading myself to pretend I have £2000 savings as my net worth.

My true position is that I am £8000 in debt.

You'll know how those numbers fit to your own situation. All the time you have debts at more than 0% but have other money elsewhere it is pointless to think you actually have savings when you are really still in debt.

pma13

i don't think i have savings!!! I did state I know better to pay debts off first....I am simply trying to work out where to put while I try and negotiate some down as I owe just under 5000. I am thinking if I can try and claim back some charges against what I owe and see if I could try then for final settlement offer, I may be in a closer position to clear.