Best accounts to save into need help

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Hi i am just after some good really strong advice really i come out of my IVA in september/october so my questions are

1.I can realistically pay £500 a month into 2 separate accounts so for me at the moment are the best 2 accounts the TSB 5% account (do you only get the 5% when you have 2,000 in the account) and also using the satander as my main account 3% on 3,000 plus you have to have at least 2 direct debits going out which i can do

2.How do the banks look on you when you come out of an IVA in regards to your credit score when going for a mortgage if its a small one less than 50,000 if i can also put down a 5% deposit and i am already paying into a help to buy isa

3.I feel i want to keep money in my TSB account because i think i want to take my mortgage with TSB as it is quite flexible and you can pay it off early with no charges

Any advice on these would be great

Thanks for any help

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  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Best current accounts for you initially would be tab and nationwides flex direct, both also have regular savers attached which offer 5%, but the regular savers are meant to be held for a year. That would give you 5% on your money with no fees.

    Your credit file will be affected by the iva, this will improve over time and disappear after 6 years, you may well struggle for credit in the first few years, if you ask a mortgage question on the relevant board there are brokers and employees who can give you an indication.

    Ther shouldn't be much any benefit in holding an account and mortgage with tsb so be flexible and see what might be available on the whole market, and the best deal.
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    Cultkid wrote: »
    1.I can realistically pay £500 a month into 2 separate accounts so for me at the moment are the best 2 accounts the TSB 5% account (do you only get the 5% when you have 2,000 in the account) and also using the satander as my main account 3% on 3,000 plus you have to have at least 2 direct debits going out which i can do
    Subject to meeting the necessary conditions, TSB pay 5% AER on any amount under £2000, above that they nominally pay 5% AER on £2000 (because of the lack of compounding the actual rate is a little less).
    Santander however, charge you £5 a month, and don't pay 3% if you have less than £3000 in the account, and don't pay anything if you have less than £1000. Unless you are getting lots of cashback on your DDs it doesn't seem the right account for you.
    Nationwide, also paying 5% would seem a better choice.
    Eco Miser
    Saving money for well over half a century
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