Help out an idiot

Eric999

Hello all, been a user of these forums for years but never decided to join or post before but recently I've found that I'm a massive idiot when it comes to my money.

I'm not bad with money, far from it compared to some of my friends, it's just that I do absolutely zero with it.

I've spent the past week or 2 browsing some of the guides on this site and find that all it's doing is confusing me more. I read the one about the savings which says everyone should firstly put their money in an NISA but then the NISAs guide says a Current Account is better.

So I'm going to post here in the hope someone can give me a definitive answer if I lay my situation out clean:

I currently have a Barclays account which has a £1,000 overdraft and a BarclayCard. I've been into my overdraft maybe twice in the last 2 years and I only occasionally use my credit card just so it's being used, I owe nothing on it.

I have student debt and that's it, I rent my flat and have pretty steady income.

Currently I have around 4k in my e-savings thing as part of my Barclays Account, I got about 32p in interest the other day on that which I'm sure you'll agree is massively pitiful but every month I put about 170 quid in (10% of my wage).

In short, I'm sure that at the very least, I can keep my current situation going while opening one other account to move my savings into to make a little more interest. At best I could open a couple of different ones and shift money around here and then regularly to maximise my interest.

What do I do? To round the numbers, let's say I have exactly 4k in cash and 200 a month to add to it.

I hope that's enough info to point me in the right direction, I appreciate any help you can give me.

Thanks

beecher2

Have a look here http://www.moneysavingexpert.com/savings/savings-accounts-best-interest for help

Moving to Santander might be the best option for you.

aggypanthus

I am no expert but took heed of the forum..TSB pay 5% on max of 2k in current acc, open then thats 4k taken care off. The branch toldme to go online and set up rrg payments of 500 per month, on the same day, from one acc to the other and back again to ensure the min income was achieved.
LOTS of other options too.. browse other threads.

Eric999

beecher2 wrote: »

Have a look here for help

Moving to Santander might be the best option for you.

Yeah I read that one, the Santander one is good but would I have to have all my money in the one account i.e. a 4k balance to get the interest?

Barclays has the separate e-thing where, even though I earn a pittance in interest, it's apart so when I check my balance etc. I'm not tempted to spend a load of money simply because it's there.

With the Santander 123 thing can I at least have a separate pot and still get the interest?

Plus if the interest equates to what 80 quid a year or so, is it not worth transferring to one with a slightly lower interest rate but has a switching fee?

Eric999

aggypanthus wrote: »

I am no expert but took heed of the forum..TSB pay 5% on max of 2k in current acc, open then thats 4k taken care off. The branch toldme to go online and set up rrg payments of 500 per month, on the same day, from one acc to the other and back again to ensure the min income was achieved.
LOTS of other options too.. browse other threads.

I don't understand, how is 5% max on 2k 4000 taken care of?

YorkshireBoy

Turn your 27p into £13 a month by opening 2 x TSB Plus current accounts (£2K in each).

Open up a Nationwide FlexDirect account for the ongoing monthly savings.

Certain hoops to jump through, nothing too onerous, but 5% AER on everything.

If you want to keep things a little simpler, open a Lloyds Club account and an associated Club monthly saver. Benefit is all with one bank...drawback is only 4% AER on everything, and 2 DDs have to pay out each month.

There are many other permutations, so read the boards (savings and current accounts) to get a feel.

Eric999

YorkshireBoy wrote: »

Turn your 27p into £13 a month by opening 2 x TSB Plus current accounts (£2K in each).

Open up a Nationwide FlexDirect account for the ongoing monthly savings.

Certain hoops to jump through, nothing too onerous, but 5% AER on everything.

If you want to keep things a little simpler, open a Lloyds Club account and an associated Club monthly saver. Benefit is all with one bank...drawback is only 4% AER on everything.

There are many other permutations, so read the boards (savings and current accounts) to get a feel.

Do I have to open the 2 TSB accounts in different names or anything?

Then do I just put 2k in each and leave it there permanently or take off the interest each month so there's only ever 2k or what?

Then I open the Nationwide account and just use that as my regular card that I buy lunch on or whatever?

YorkshireBoy

Eric999 wrote: »

Do I have to open the 2 TSB accounts in different names or anything?

Then do I just put 2k in each and leave it there permanently or take off the interest each month so there's only ever 2k or what?

Then I open the Nationwide account and just use that as my regular card that I buy lunch on or whatever?

There are many threads on these boards about how best to run these accounts. Please take some time to read them. That said, and in a nutshell...


Open 2 x TSB Plus accounts in your own name
Opt for paperless statements and correspondence
Deposit £2K in each
Each month, transfer £500 from 1>2, and back from 2>1
Collect £13 interest each month


Re Nationwide FlexDirect...


Open the account
Deposit £1K per month (say from TSB1), and transfer it straight back out
Put your £200 per month savings in there to build (up to the £2.5K maximum)


Keep your savings separate from your main current account, ie buy your "lunch or whatever" from the account you're using now.

Eric999

YorkshireBoy wrote: »

There are many threads on these boards about how best to run these accounts. Please take some time to read them. That said, and in a nutshell...


Open 2 x TSB Plus accounts in your own name
Opt for paperless statements and correspondence
Deposit £2K in each
Each month, transfer £500 from 1>2, and back from 2>1
Collect £13 interest each month


Re Nationwide FlexDirect...


Open the account
Deposit £1K per month (say from TSB1), and transfer it straight back out
Put your £200 per month savings in there to build (up to the £2.5K maximum)


Keep your savings separate from your main current account, ie buy your "lunch or whatever" from the account you're using now.

Thanks, I was just posting a plan similar to this when you posted.

So I'm making £13 a month interest on the one by simply having these 2 accounts and setting up 4 standing orders (into 1, out of 1 into 2, out of 2 back to my Barclays?).

Those amounts remain the same month after month but the Nationwide account is just where my savings go.

Am I right? My apologies for asking stupid questions, as said I've read pretty much all the guides but they take some understanding.

Also, as I said above, is there no benefit to choosing a different account that gives a bonus for opening or whatever?

YorkshireBoy

Eric999 wrote: »

So I'm making £13 a month interest on the one by simply having these 2 accounts and setting up 4 standing orders (into 1, out of 1 into 2, out of 2 back to my Barclays?).

~£6.50 in each TSB account. You can use SOs from/to Barclays if you want, but you can also use manual immediate FPs.

Those amounts remain the same month after month but the Nationwide account is just where my savings go.

Yes for TSB, along with the £1K in/out required at Nationwide to secure the 5% rate.

Am I right? My apologies for asking stupid questions, as said I've read pretty much all the guides but they take some understanding.

The guides (on the main site) aren't as good, and as thorough in detail, as the practical issues discussed/shared on the forums.

Also, as I said above, is there no benefit to choosing a different account that gives a bonus for opening or whatever?

There's at least £400 of "benefit" to be had by exploiting switching incentives...but the two (switching and high interest) don't generally go hand in hand. Treat them as different projects.

Eric999

YorkshireBoy wrote: »

~£6.50 in each TSB account. You can use SOs from/to Barclays if you want, but you can also use manual immediate FPs.Yes for TSB, along with the £1K in/out required at Nationwide to secure the 5% rate.The guides (on the main site) aren't as good, and as thorough in detail, as the practical issues discussed/shared on the forums.There's at least £400 of "benefit" to be had by exploiting switching incentives...but the two (switching and high interest) don't generally go hand in hand. Treat them as different projects.

Cheers mate, I've just opened my first TSB account. Is there anything to stop me from just opening another right now with the same details or do I have to wait/use a different email address etc.?