Different saving pots

maggiem

Hello,
I'd really welcome some advice. At present I have savings with intelligent finance. I have 7 small pots with various titles such as hols and Christmas, car maintenance etc. I really like being able to view on line and move money about (I work in Europe a lot). However the interest rate is dire. I have about 7k spread over these pots (including small accounts for my children).

I'd really like something similar paying a more reasonable interest rate but like to have these as separate accounts. I have a Santander 123 current account with savings held in the account. I have read the articles about regular savings but it sounds as if I'd need to open 7 current accounts and I'm not sure that would be possible especially as only in UK UNTIL 1st January. I have a house here but visiting branches is hard to arrange.

Please has anyone any suggestions? Thanks

bigadaj

You can hold different current accounts with a range of providers paying 3-5%, most can be set up online and some require direct debits while others just require standing orders, tesco doesn't need either for example. These could then be named with particular pots if you require, just note the individual requirements and don't go overdrawn, full details on the 5% loophole thread and article on the main site.

jackieblack

In the past I've just kept a record in a notebook and/or on a spreadsheet of how the balance is split between my different 'virtual pots'

HappyMJ

I have opened dozens of accounts over the years and rarely have I had to go in branch. I've visited the Nottingham Building Society to open a regular saver in the past year...that's about the only one I can remember.

I've got Santander, Halifax, HSBC, Nationwide, Yorkshire Bank, First Direct, Lloyds, TSB and Tesco. None of which has ever required me to go in branch.

jimjames

Some people complain about having too many accounts to get the best interest rates but it sounds like that would be the perfect solution for you. For £7k you can get 5% on all/most of it depending on your situation. Either way it will be vastly better than IF rates.

colsten

maggiem wrote: »

it sounds as if I'd need to open 7 current accounts and I'm not sure that would be possible especially as only in UK UNTIL 1st January.

You can try applying online today but there is no way you could get your debit card and things like online access details before the 1st. If you have someone who can forward your post to you, this might not be an issue. Yur applications might go through without the need to go anywhere near a Branch.

Once you are no longer a UK resident, you will find it impossible to open a current account.

You also don't need 7 accounts to split your savings into 7 pots. Just use virtual pots that you manage with a spreadsheet, a personal finance package such as YNAB, or pen & paper.

You could, for instance, put £1.8K into a TSB Plus (5%), and £2.6K into each of 2 Tesco current accounts (3%). Then swap £500 a month between TSB and one of the Tescos once a month, to meet the minimum deposit requirements for TSB. You might also want to make use of the TSB Monthly Saver (5%).

The 123 is going to cost you £5 a month from January onwards, so is most likely a candidate for closing / switching. You left it all quite late......

maggiem

Thanks for all the good advice. I have applied for a tsb plus account and will park money in there. I think I will also apply for a club lloyds account for much of the remainder although I will need to be organised at the start of each month to do payments in and out.

I take the points about just keeping records of each pot within the account. I also have 2 Santander accounts but think these are still worth it providing I keep enough money in each. The one we do use as a current account generates enough cash back to pay the fee and the second one is savings aimed at transferring to an ISA at the end of the financial year.

Still thinking of children's savings - tiny as they often need to draw on this and both are actually adults! Might try to encourage one to open help to buy isa and think about the other one a bit more.

Thanks again - I was getting drowned in all the different details :T