20-something yr old student, where best store my savings?

superman909

Hello guys...... I am looking a bit of sensible advice. So I have around £5k in savings which I have accumulated (and every so often delved into when needed) over the years....

I am not paying tax, try to live solely off my student finance as university student, and all my savings are currently in a cash ISA in which the interest rate (I believe it is 2.3% gross p.a.) is due to drop come early December as I have had the cash ISA open for a certain period of time and the interest will shortly be paid out to me on that and then I intend on transferring out as soon as I can. I have been searching around, mainly reading through Money Saving Expert's numerous articles regarding savings, as well as popping into my local bank, and I am not sure that as a student a cash ISA is really giving me the best rate of interest or is my best value option. Obviously I am not paying tax, as I am a full-time student on a very demanding course in comparison to many other courses, so absolutely no time work working part- or full-time. Therefore it goes without saying that I want to store my savings away in the best possible place for me as a full-time student with no regular monthly income.

Hopefully I will get a few responses which will help me to make a sound decision on where to go from here with my savings.

Archi_Bald

1 x TSB Plus and 2 x Tesco current accounts, if you can get through current account applications. Plenty of post on these on the forum and the main site. If you can't get any current accounts, you'll be stuck with mediocre ISA rates.

Don't fall for anyone promising 8% or more if only you commit for many many years. As long as you have a need to dip into your savings now and then, you can't commit to 5+ years. And any so-called guarantee of 8%+ is probably a scam, anyway.

superman909

Archi_Bald wrote: »

1 x TSB Plus and 2 x Tesco current accounts, if you can get through current account applications. Plenty of post on these on the forum and the main site. If you can't get any current accounts, you'll be stuck with mediocre ISA rates.

Don't fall for anyone promising 8% or more if only you commit for many many years. As long as you have a need to dip into your savings now and then, you can't commit to 5+ years. And any so-called guarantee of 8%+ is probably a scam, anyway.

Thank you the advice, really appreciated! I was looking at the TSB Plus account already actually and it had crossed my mind about maybe being rejected because I am a student or employment status, etc. I have tried the search tool in the forums and can't find the threads or articles you are referring to regarding guidance on a successful current account application. Maybe you or someone else could point me in the right direction with a link? I tried searching "current account application" and variations of this and didn't find a lot. There again I don't tend to use forums a lot so I suppose other members could find these quicker? Hopefully someone can help with this too.

Archi_Bald

I reckon your main potential issues when applying for a current account whilst being a student would be your income (note: income, not salary) and your occupation. I have not seen any tips on here on how you successfully apply as a student but I have seen posts from people who say the are students and have successfully applied for normal current accounts. It should be easy enough if you can convince the bank you income is higher than your outgoings, and if you don't apply for an overdraft. Just guessing, though - it's been decades since I was a student myself, and the current account I had myself back then sort of got given to me by my local village bank.....very different times, lol!

Medstudent

superman909 wrote: »

Thank you the advice, really appreciated! I was looking at the TSB Plus account already actually and it had crossed my mind about maybe being rejected because I am a student or employment status, etc. I have tried the search tool in the forums and can't find the threads or articles you are referring to regarding guidance on a successful current account application. Maybe you or someone else could point me in the right direction with a link? I tried searching "current account application" and variations of this and didn't find a lot. There again I don't tend to use forums a lot so I suppose other members could find these quicker? Hopefully someone can help with this too.

In terms of getting a current account it shouldn't be too much of a problem, I have the TSB one and am a student myself. Applied and accepted no problem.

Although having said that the COOP did reject me (I needed another current account and it came with a £100 freebie) but I think that is because it comes with an overdraft and the amount of credit I have already available is probably too high for my income.

colsten

I believe some banks are a bit restrictive and will only give you a student account if the occupation given on the application is student. Whilst at the same time, they are quite happy to let e.g. a homemaker or a retired person (not suggesting there is a relationship between these example professions) have most or all of their other accounts, as long as the applicant passes their credit check.

superman909

Medstudent wrote: »

In terms of getting a current account it shouldn't be too much of a problem, I have the TSB one and am a student myself. Applied and accepted no problem.

Although having said that the COOP did reject me (I needed another current account and it came with a £100 freebie) but I think that is because it comes with an overdraft and the amount of credit I have already available is probably too high for my income.

Cheers for the advice, particularly useful with it coming from someone is a similar position to myself. Also thanks to the other members who have really helped a lot here.

Medstudent..... When you applied for the TSB account in question (or any other account for that reason) do you always select your occupation as being a "student". I'm just bearing in mind the last poster's comments on what you choose as an occupation, and I don't see any way of getting around this as it would otherwise be lying to the banks.

sopranolmu

superman909 wrote: »

I was looking at the TSB Plus account already actually and it had crossed my mind about maybe being rejected because I am a student or employment status, etc. Hopefully someone can help with this too.

Hi! PLEASE don't be put off current accounts! I am in a very similar position to you - I'm a twenty something full time student, but have been money saving for years. I had no problems opening the TSB account, nor the Nationwide FlexDirect, nor the Tesco one. I'd highly recommend Nationwide or TSB. :j

sopranolmu

I also listed my occupation as student, and didn't ask for an overdraft - no problems with any bank application I've ever made.

superman909

Thank you - successful application made, found out straight away. I need to take proof of ID in with me (2 documents which may include passport and driver's licence). It asks me to take these to the nearest branch which is 10 miles away actually. I will be in Glasgow tomorrow which is 120 miles away, would you expect them to deal with this despite me living so far away?

colsten

superman909 wrote: »

Thank you - successful application made, found out straight away. I need to take proof of ID in with me (2 documents which may include passport and driver's licence). It asks me to take these to the nearest branch which is 10 miles away actually. I will be in Glasgow tomorrow which is 120 miles away, would you expect them to deal with this despite me living so far away?

Sounds great, hope that's the major hurdles taken! Take passport and DL as well as a bank or credit card statement, or a utility or phone bill, for proof of address.

Prepare yourself for all sorts of questions from the bank personnel and remember that all you want to do is open a current account. Decline to answer any questions that do not appear to directly have anything to do with a current account application. Politely ask them to defer unrelated questions to after they have given you the current account you applied for. And decide then whether they really need to know when your contents insurance or car insurance etc etc etc is due for renewal. Always remember the guys in Branch are simple sales people - don't get intimidated by their job titles - and remember you are under no obligation to buy anything. If they don't want your custom, you can go elsewhere.


Too late now, but for next time - - - are you on the electoral roll? What does your credit file say? Usually applications just sail through if your credit file is complete.