First post :) High interest Current accounts

Archi_Bald

piujade, just in case you are not aware - your wife needs to register for gross interest. Usually done by giving the bank an R85.

Also, unrelated to bank accounts, she may be able to register for marriage allowance https://www.gov.uk/marriage-allowance

piujade

Great idea. My only concern with first direct is...

If I do decide to go into employment (PAYE), I won't have use of the firstdirect account... will I still have to keep making payments? I prefer to keep savings and tax money separate.

I would prefer to start saving in OH's accounts (Nationwide, TSB), but don't want to keep tax money and savings accumulating in the same account.

I also did read Martin say on his blog, come end of March 2016 (by which we should have atleast £5000 saved) , we can move all the savings to a CASH ISA (until 6 April, after which the money can go back to those accounts), so won't pay interest on it. I was a bit confused about this.

:A

piujade

Hi Archi,

We actually received an email about the Marriage Allowance, only last week! I'll look into it properly this time. Wife had registered for it months ago, and it's come through in the new tax year, I believe

Thanks for the reminder!

x:D

Archi_Bald

piujade wrote: »

I also did read Martin say on his blog, come end of March 2016 (by which we should have atleast £5000 saved) , we can move all the savings to a CASH ISA (until 6 April, after which the money can go back to those accounts), so won't pay interest on it. I was a bit confused about this.

On current interest rates, it makes no sense whatsoever to put any money into cash ISAs, especially if you have less than £15,240 in savings per person and if one of you isn't a tax payer.

Paying tax on 3, 4, 5 and 6% leaves you, after tax, with better interest than any cash ISA paying less than 2%.

The only possible exception could be the Help To Buy ISA that should get launched in the autumn as the government promises to chip in when you buy your first property. Details are still scant so we need to wait until we know how will actually work.

masonic

piujade wrote: »

If I do decide to go into employment (PAYE), I won't have use of the firstdirect account... will I still have to keep making payments? I prefer to keep savings and tax money separate.

I'm not sure why you wouldn't have use of the first direct account if you went into PAYE. The terms of the regular saver are that if you close early, you just get their bog standard savings account rate, but you are allowed to change the monthly amount save over the 12 months if you need to, down to about £25 I think.

I also did read Martin say on his blog, come end of March 2016 (by which we should have atleast £5000 saved) , we can move all the savings to a CASH ISA (until 6 April, after which the money can go back to those accounts), so won't pay interest on it. I was a bit confused about this.

I think you've misunderstood something there. There has been some talk about people being able to temporarily remove money from their ISAs and put it back again, but for the most part cash ISAs are not very useful at the moment.

piujade

Hi Archi,

Yeah, true. After doing loads of research, ISA interest rates are pitiful! I will start off with wife's TSB account (as it's not just for 12 months), get her another Nationwide current account in few months, and go on from there...

I heard about the Help to Buy ISAs, but guess we have to wait until more details emerge. I am sure I will be back for more advice here

x:beer:

piujade

Hi Masonic,

I had to open a Nationwide account, as my salary is coming soon! But, I will look into opening the firstdirect account - they have said on the website - the standing order amount can be changed over the phone.

Yeah, I think I misunderstood with the ISA. Too much info on bank stuff over the past few days!