any tips on what to look for in a savings account

pma13

I want to open a savings account. Iam after looking at something that I will have to give notice to get money out (to prevent me using). What else do i need to look out for...apologies sound a bit thick but never had a savings account and Iam coming to the end of my dmp soon so the plan is to save minimum amount until my dmp ends and then put the money I would have paid on dmp into savings account. The end product perhaps one day a homeowner ship...many moons from now

jimjames

Probably a regular savings account meets your requirements. Normal savings accounts pay such poor interest that current accounts are far betterbut they are very easy access.

cheexy

Try first direct. Interest rate is at 6% at the moment for a maximum monthly saving of 300 pounds per month. You would need to open a current account with them but if you are switching, you would get 100 pounds incentive. No withdrawals allowed or you would have to close your account and get a very rubbish rate. Alternatively, you could go with the TSB Classic Plus Account which requires no switching. It pays 5% gross per annum for a maximum of 2000 pounds but you can open two and you don't have to switch. Hope these help.

YorkshireBoy

cheexy wrote: »

Try first direct. Interest rate is at 6% at the moment for a maximum monthly saving of 300 pounds per month. You would need to open a current account with them but if you are switching, you would get 100 pounds incentive. No withdrawals allowed or you would have to close your account and get a very rubbish rate. Alternatively, you could go with the TSB Classic Plus Account which requires no switching. It pays 5% gross per annum for a maximum of 2000 pounds but you can open two and you don't have to switch. Hope these help.

Do you think these full feature current accounts, particularly First Direct, would be available to those currently in a "DMP" (debt management plan)?

InsideInsurance

pma13 wrote: »

looking at something that I will have to give notice to get money out (to prevent me using)

You do realise that with most of these that you can still access the money without notice but there is a penalty on the interest paid?

If you are trying to stop impulse spends you may be better off looking for a branch only/ passbook type arrangement irrespective of notice to just make it difficult for yourself. With such a small selection to go from your not likely to get good rates though.

cheexy

YorkshireBoy wrote: »

Do you think these full feature current accounts, particularly First Direct, would be available to those currently in a "DMP" (debt management plan)?

I would have thought anyone could open them just that they may not have access to overdraft facilities.

Archi_Bald

cheexy wrote: »

I would have thought anyone could open them just that they may not have access to overdraft facilities.

First Direct / HSBC particularly have been particularly picky about accepting applications. Remember, it doesn't matter whether you have an agree overdraft or not, you can still go overdrawn. Unfortunately, it is a fact that people on DMPs are seen as a higher risk than somebody who has a squeaky clean credit history.

pma13

thanks has given me something to think about

Thrugelmir

Are you a FTB?

As you can save up to 3 years in the Nationwides Save to Buy Account. (There is an ISA version as well).

So despite your previous history. You could start building brownie points for the future. That would give you a leg up for a mortgage.