Best savings or bank account

class2ldn

Hi guys. We are looking to try and save some money, nothing special just around 50-100 a month.
We've been looking at the tesco current account as it's fee free and no direct debits appeal.
I know the 3% isn't the best out there but we like that we can get to our money whenever aswell.
Also looking at savings accounts but what's the best around for our situation?
We won't have any big lumps to put in so it will just be a constant feed of 50-100 pm
Any advice on which is better?

Thanks

class2ldn

Forgot to say that I'm a higher rate tax payer aswell so would it be better to just get it in my partners name?

bowlhead99

Nationwide do a regular saver account at 5% (up to £500 a month deposit) and Lloyds have one at 4% (up to £400 a month, must be paid in by standing order). Both require you to have current accounts with them, but the current accounts are good. There are other 'regular saver' accounts available from other banks but those are the ones I use.

If this is your only real savings then the fact you are a high rate taxpayer doesn't matter. From April, all high rate taxpayers can earn £500 of interest income every tax year without having to pay tax on it (basic rate taxpayers get the same deal but the allowance is £1000 for them). Even at a high rate of 5%, you'd need £10000 of savings sitting in an account for an entire year before you get £500 of interest. So I wouldn't bother trying to be clever and putting it in the partners name. Joint account or your own account is fine.

Reconsider once you are earning bigger amounts of interest than what you'll get on £50-100pm; that rate of saving will build up to a balance of £600-1200 over the first year but only on as average be half of that.