Saving/ISA account suggestions

YorkshireBoy

Cisco001 wrote: »

Lloyd's need DD.

As does Santander, so the question is "do I want 4% or am I happy with 3%?"

bigadaj

Cisco001 wrote: »

Lloyd's need DD.

Yes, but no charges. Direct Debits can be to charity or alternatively to tesco savings accounts so not difficult.

Cisco001

BTW, since you don't benefits for Santander 321 as no DD.
I suggest you switch to first direct to bag their 150 bonus. Then get their 6% regular saver.
Then open classic plus at TSB, 2k for 5%
And open Tesco, 3k for 3%

All you need is move your money around these account once a month.

Also, you can consider getting 2 credit card, and set up DD. All you need is spend few pounds on each card every month and pay in full.

Cisco001

YorkshireBoy wrote: »

As does Santander, so the question is "do I want 4% or am I happy with 3%?"

Some bank don't pay interest if you don't qualify all requirements. You will need to read t&c

YorkshireBoy

Cisco001 wrote: »

Some bank don't pay interest if you don't qualify all requirements.

All banks don't pay interest if you don't qualify all requirements.

You will need to read t&c

Thanks for the tip! Unless you meant the OP?

TheLittleSaver

Hi guys, please forgive my ignorance, but I have got a couple of questions:

- I see that the NET RATE for the TSB Classic Plus account is 3.91%, does that mean that I will be paid directly the 3.91%, or I get the 4.89%gross and than I must declair that on my next tax return?

- It says that "5% AER / 4.89% gross variable interest paid on balances up to £2,000 only "
does that mean that I must keep £2000 maximum in the account to have the interest? I know it seems a silly question to you all, but I am not confident with these things, besides I see the table and it shows that, for more than 2K, the interest is 0.

Oh, one more things.,.. I see now the SANTANDER account will increase the fee next year... so, considering this, which account would be best, santander or the TSB one?

Thank you for your patience!

Cisco001

TheLittleSaver wrote: »

Hi guys, please forgive my ignorance, but I have got a couple of questions:

- I see that the NET RATE for the TSB Classic Plus account is 3.91%, does that mean that I will be paid directly the 3.91%, or I get the 4.89%gross and than I must declair that on my next tax return?

- It says that "5% AER / 4.89% gross variable interest paid on balances up to £2,000 only "
does that mean that I must keep £2000 maximum in the account to have the interest? I know it seems a silly question to you all, but I am not confident with these things, besides I see the table and it shows that, for more than 2K, the interest is 0.

Oh, one more things.,.. I see now the SANTANDER account will increase the fee next year... so, considering this, which account would be best, santander or the TSB one?

Thank you for your patience!

Don't know where your 3.91% come from.
For TSb, £0 - £2000 will have 5%. Anything over £2000 is 0%.

As I said in earlier post, the best will be getting TSB + first direct (switching offer £125) + Tesco.

eskbanker

Cisco001 wrote: »

Don't know where your 3.91% come from.
For TSb, £0 - £2000 will have 5%. Anything over £2000 is 0%

If you maintain a balance of £2K in a TSB Classic Plus, you'll receive 3.91% net interest (i.e. 4.89% less 20%) unless you qualify to receive interest gross as a non-taxpayer. If you have a lower balance with enough headroom for the interest to compound then you can achieve a net 4%.

AndyT678

TheLittleSaver wrote: »

I see that the NET RATE for the TSB Classic Plus account is 3.91%, does that mean that I will be paid directly the 3.91%, or I get the 4.89%gross and than I must declair that on my next tax return?!

Banks automatically deduct basic rate tax on interest paid to non ISA accounts unless you submit an R85 form to say you should receive gross interest. So you will receive 3.91% (4.89% * 0.8) in your account. If you're a basic rate tax payer you don't need to do anything.

TheLittleSaver

Thank you guys for the clarification.

@Cisco001
Let's see if I got it right:

- I open the TSB Classic Plus, where I get 3.91% up to £2k, if I have more than £2k I don't get anything (and I even lose the 3.91% for that month, or do I always get the 3.91% for the first £2k and than I just get nothing more than that? This is something I still don't understand)
- Open a Tesco account (which works up to £3k... same question as above)
- I switch my Santander account to "First Direct" and open the regular saver to get 6% (which is 12months fixed... is it possible to apply again for other 12 month eventually? Besides, this account doen's have any restrictions on the amount of money I can put in, right?)

So, in case I must have £2k and £3k max for TSB and Tesco, once I will be reached the threshold, I should shift all the "excess money" on the FirstDirect account?
I really want to have everything clear in my mind before opening three different current accounts, but we are getting there!