Unsure where to save / switch

Rom

Hi

Im really after some help with switching my accounts / saving methods.
Struggling to get my head around which is the best route for me.

Currently I have a Barclays Current account (additions, ill be cancelling today) This usually has a minimum of 1k to 1.5k in, come end of month, after bills are done and dusted. Also has a 5k overdraft attached, which ive not used in years.
I have a 'thing' about having money around 'if' I need it. Maybe from being overdrawn for long periods. I now plead poverty if I see the 1k mark. This is silly I know, and im trying to work on it.
All the bills come from this account, my gf transfers money to it for bills. She has no direct debits currently.

I have £4853 in a Barclays isa, paying a pitiful 0.8%. This is the fruits of 2 years saving £200 a month towards a house. Currently renting, and been paying off credit cards from sillier younger days.
As of end of Jan, we will be able to save £400. As of end of March, that will increase to £500-600.

I also have £1052 in a pitiful account ive been saving for my 4 year old daughter.
I would be looking to swap this, havent planned on using it for the house, but if push came to shove, I can always repay it post house purchase.

So ive been looking at the current account offers around. But cant really decipher which suits us best.
Initially I came here, after being told of the Halifax £100 switch, and £5 a month.
But unsure if Id be better off with the Santander 123, or splitting it etc.

We will be opening a HTB ISA under my gfs name (I cant) So £1000 is ear marked for that, and £200 a month.
That leaves me with £200 a month (£30 a month on Daughters account too) to find a home for, rising to possibly £400 (£600 total) in April.

Being brutally honest, Im pretty lazy with these things. Ive been in a 0.8% ISA for 2 years! Only just found out daughters money is in 0.25%!
So while splitting between a dozen accounts with a web of payments bouncing around may net me a little more. Id be equally happy with a simple (say 2 accounts, maybe plus savings account etc).

First thoughts were to both switch to Halifax, and find somewhere else to put my savings.
Or gf to Halifax, myself to Santander. Ive figured my cashback would be £6.57 based on our bills, so would cover the fee.
Though i guess I could also switch to Halifax for the £100, then go to 123. Or even keep both for the £5pm, and switch money around.

My mind is boggled. Any help and advice much appreciated.

colsten

If you want the best return for your money, you use multiple current accounts and Regular Savers. You just work down from the highest interest rates to the lower ones. There is space for over £50,000 for sole accounts, £120,000 or so if there is 2 of you and you can make use of joint accounts.

If you cba with multiple accounts, you will have to settle for lower returns. I am horrified that prospective FTBs, or anyone, actually, would settle for a 3% AER Santander account that would cost the £60 a year when they can make more than 5% in accounts that cost nothing.

Why can you not do an HTB ISA?

For your daughter, you could look at Halifax Kids Regular Saver and/or Halifax cash JISA. If she is still very young, an investment JISA may be appropriate for her. Or a mixture of both.

Thrugelmir

Switch to a Help to Buy ISA. Currently paying 4%. Plus you'll get the bonus on top.

enthusiasticsaver

I would not bother with Santander. You really need the £20k to make that one worth opening. On the amount you are talking about I would initially be looking at TSB and Nationwide (5%) and the regular savers if you are able to do monthly amounts. Look at the link Colsten has posted above.

LXdaddy

colsten wrote: »

Why can you not do an HTB ISA?

Perhaps the OP is not a first time house buyer so would not qualify.


I echo the various posts above - get the Halifax HTB going and then look at the various current accounts and regular savers that are at the top of the interest paying tables. You should be able to get 5% on a reasonable amount, 4% on some and 3% if you still have more funds.
http://bankaccountsavings.co.uk/ will get you pointed in the right direction (I think that this site has not been updated with the latest Nationwide 5% offerings)

YorkshireBoy

LXdaddy wrote: »

http://bankaccountsavings.co.uk/ will get you pointed in the right direction (I think that this site has not been updated with the latest Nationwide 5% offerings)

It's never had the Nationwide FlexDirect listed. It also (incorrectly, as the accounts are full) uses the AER, not the gross p.a. rates, to calculate annual returns.

If the author could make these changes it would be a 100% accurate one-stop shop for anyone with £50.5K (or a couple with £130.5K) to save, so all the newbies posting "I/we* have £2K/£5K/£10K/£15K/£60K*" to save and don't know what to do" could be directed straight there.

* Delete as appropriate.

Rom

Thank you for the replies and links. Looking now.

Indeed, I have had a house before, when I was very young. Sadly i was too immature to do anything meaningful when I sold it. So i cant have a HTB myself.

Finance wise, Im trying to get back on track. Im debt free now, trying to reign in expensive hobbies. Credit wise I just checked, surprised I scored 995/999. My gf is working on hers (not bad, just never had any)
So just need to grind the deposit, which should hopefully start growing a lot quicker this year, as Ill be tripling previous years savings.

Its a poor excuse I know, its just finding time to actually setup multiple accounts, going into branch I assume with ID for each one etc. But now realising whats out there, I guess its time I pull my finger out.

One other query, when switching, do they automatically close my old account ? I found this on one MSE page about the TSB 5%

Plus, if you switch to this account via our link you get a free £100, though you need to meet certain criteria to get this extra bonus. You don't have to fully switch if you're only after the interest, though you will need to pay in at least £500 a month & register for internet banking and paperless statements & correspondence.

Just thinking I cant 'switch' twice to open 2 new accounts if they close them.
And all this shuffling money around, just to shuffle it back out is all legit, the banks dont frown upon it ?

Thanks again.

Now looking at putting the 5k split between 2 TSB accounts, the Halifax HTB Isa, the remaining 400 a month split between 2 TSB saver accounts, Kids in a Halifax 6%, and potentially 2 Halifax accounts to just use as current accounts.
If i were to go Nationwide, for the higher limits, how would moving savings from a high interest account work. Lets say i moved 1k from the TSB, to the Nationwide and back, every month. How would that affect the interest on the TSB account.

colsten

Rom wrote: »

Its a poor excuse I know, its just finding time to actually setup multiple accounts, going into branch I assume with ID for each one etc.

most accounts can be applied for online and if you have a decent credit history and are on the Electoral Roll, you are unlikely to have to ever go anywhere near a branch.

Rom wrote: »

One other query, when switching, do they automatically close my old account ?

if you want the joining bonus, you must switch, and a switch automatically closes your old account

Rom wrote: »

Just thinking I cant 'switch' twice to open 2 new accounts if they close them.

why not? you obviously need to comply with the switch terms but that's easy enough to do. Also, search for "donor" accounts.

Rom wrote: »

And all this shuffling money around, just to shuffle it back out is all legit, the banks dont frown upon it ?

what would not be legit in you sending money from one of your accounts to another of yours? Lots and lots of people here have been doing this for years.

Rom wrote: »

and potentially 2 Halifax accounts to just use as current accounts.

Halifax Rewards are good for the monthly fivers. You can have 3 between the two of you = £15/mth, £180 a year. But otherwise the accounts have little attraction and I would only use them for the fivers.

Rom wrote: »

If i were to go Nationwide, for the higher limits, how would moving savings from a high interest account work. Lets say i moved 1k from the TSB, to the Nationwide and back, every month. How would that affect the interest on the TSB account.

Do it on the same day (by SO?) and it will have no impact on the interest (other than that you get 5% AER in both). Big advantage of Nationwide is their 5% Regular Saver that takes £500 a month.

Also, if you do go with Nationwide, get yourself an account to switch, find a mate that can refer you - £100 for each of you!

Rom

Thank you Colsten, very helpful stuff.

We did try to open a HTB on line, but it asked for my gf to go in with ID, so i assumed this was the same with any account.
I did just open 2 new Barclays accounts online, already with them, thinking i can just use these for my 'switch' accounts ? I know the new accounts will need DD, but assume I can set them up, they dont have to be included in the switch? Can always set some to these dummy accounts first if need be.

colsten

Rom wrote: »

I did just open 2 new Barclays accounts online, already with them, thinking i can just use these for my 'switch' accounts ?

brilliant move :cool:. Sure you can use them - but wait until you have the debit cards before you apply for the switch. You might also need some DDs, and it might be an idea to have the DDs pay once before you switch.

Rom wrote: »

I know the new accounts will need DD, but assume I can set them up, they dont have to be included in the switch? Can always set some to these dummy accounts first if need be.

Some switches need DDs, others don't. See the switch T&Cs.

Rom wrote: »

Can always set some to these dummy accounts first if need be.

Use 'special', small, DDs, e.g. to pull money into your own savings accounts (search the forum!) or to charities.