Current account for my savings?

Petula

Hi,

Being fed up with receiving 0.5% on my savings, I have been looking into better rates. Because I want to have access to my funds, it appears that the Santander 1-2-3 is my best bet - I've got just over £3,000 saved. I have read through both their website and Martin's advice here and am happy with the conditions but...

I have had my current account (Barclays) hacked into in the past and lost a few hundred quid, which was returned by Barclays. What I do now, with them, is to keep only the amounts I need to pay bills plus a bit more in the current account and move any other monies into my savings account - also Barclays. All done very simply online.

My worry is that if ALL of my money is in my current account (as it would be if I move to Santander) and available via debit card details, there could be a scenario that I am totally wiped out should the debit card details fall into the wrong hands - although I am careful to the extreme now. Also with Barclays I have had a second account set up (separate debit card details) and I now use this for online purchases and keep a small sum in that just for online use. Could this be done with Santander too?

Sorry, but I'm a true newbie when it comes to handling money matters- have never even changed my bank account before - and felt quite confident that MSE would be the place to get my answers

Thank you for your advice.

jimjames

If you only have £3000 then Santander doesn't appear best option when you can get 5% with tsb and nationwide for that amount as Santander will cost you £2pm from interest. Dip below £3000 and you'll only get 2%.

colsten

Keep your Barclays account and split your savings money between a Nationwide FlexDirect and a TSB Plus. Review when the FlexDirect interest rate drops in a year, and obviously watch out for any other rate changes.

Petula

Thank you both

I just have the £3k now, but will be adding between £100-£400 per month which is why I thought Santander as it allows up to the £20k plus would give me some cashback on my bills. Barclays gives nothing for my current account.

Both of the accounts you suggest are also current accounts? I think they were although I've looked at loads of charts and info today(!)- any concerns about having ALL monies available in a current account that has a debit card tied to it?

I'll only have one current account (both TSB and NW quotes are for current accounts) and I don't think that with their max limits they would suit

AndyPK

Where are you concerned your card details are going to get hacked ?
or what happened before ?

Don't forget the bank of Scotland vantage account. Interest on £5K


£400x12months = £4800.

Have a santander account with £3k in it. Use it just for utility bills. Don't let anyone else have the card.

Use a TSB account for when your shopping out and about + online.

ColdIron

If you have £3,000 and are going to increase your balance as you say, then the 123 could well be your best choice

As regards security, why not keep your Barclays accounts (with the good online banking) and simply open the 123 in addition as a savings account? Treat it just like you do with one of your Barclays ones. That way you don't need to disclose your details and you don't need to use the debit card

It's never a bad idea to have accounts with multiple organisations in case of problems, remember RBS/Natwest/Ulster Bank when no one could draw cash?

Aretnap

You don't have to restrict yourself to one current account - you can apply for as many as you like. I currently have 6 (I think) - only one of which I actually carry a debit card for. It was actually quite useful having some spare debit cards in the drawer a few weeks ago when I lost my wallet and would otherwise have had no easy way to get cash or buy things for a few days.

In fact, if you've had your existing current account a while it's a good idea to keep it, regardless of what other accounts you set up. Having the same bank account for a long time is seen as a sign of financial stability, and will look good on a credit check for any loans or mortgages you take out in future.

For further savings you should consider regular saver accounts. First Direct and M&S both pay 6% on regular saver accounts provided you also have a current account with them (you know what to do), which is double what you could get by just putting your £100-400/month into the Santander 123 account. Regular savers often also have the advantage of paying interest as a single lump sum after 12 months - which means by the time you collect it the new personal savings allowance will have come in you'll get the full 6% tax free. (Assuming the personal savings allowance is actually implemented, which depends to some extent on the outcome of the election and any emergency budget in May or June)

YorkshireBoy

jimjames wrote: »

Dip below £3000 and you'll only get 1%.

If that was the case they'd have to rename it the Santander 13 account though wouldn't they?

Petula

I really appreciate all of the help, thanks.

For someone who has only done quite basic banking up until now it is all just a tad overwhelming

I do think that maybe I'm not being very wise wishing to stick with one current account and am starting to see that now - especially as no savings account can touch what current accounts can in terms of interest right now! I'll mull over your advise this evening and come back tomorrow, hopefully with a clearer head

Thanks again, and please stay tuned :beer:

jimjames

YorkshireBoy wrote: »

If that was the case they'd have to rename it the Santander 13 account though wouldn't they?

Whoops, typo fixed now

Petula

Ok

I realise now that more than one current account isn't a bad thing I haven't yet looked at M&S which I will do before a final decision, I'm pretty set on Santander and TSB and when (thinking positively) the TSB is maxed I'll happily take on another.

I suppose one of the issues I have to delve further into also is how many DD/standing orders does each account require and the minimum amount required as to pay in per month.

Another question, apologies!, is about keeping the Barclays account. I understand that it looks good to keep it open and yes I've had it for over 18 years now, always in good standing. What will I do with it? I'm leaving them because they offer no incentive to stay - the 0.5% on any savings and no current account perks other than no monthly fee. I certainly wouldn't want to keep any more money than absolutely necessary with them, and again, I've been with them so long that I've no idea what the required monthly pay in is.

I am at least learning and narrowing things down so please don't desert me now! :rotfl: