Am I better off saving with a building society rather than a bank..advice?

Jlawson118

xylophone wrote: »

Is the account held by Grandma held in bare trust for the OP or is it an account in Grandma's sole name that she regards as money she has set aside for him?

The account is technically in her name but it does also have my name in it. She's told me I have rights and access to it since I was age 14 and I'm 20 in nearly two months. I've never really wanted to touch it, I've enjoyed seeing it build up in my life. Although my next big investment will hopefully be a car in a few months if I pass my test next week. My grandma wants to buy me one from her savings and I have a feeling I may be using part of mine for insurance and whatnot. But it has been savings all throughout my life for something like this

xylophone

What is the interest rate being paid on the account held in your name by grandma?

While it is possible for the account to continue to be held in bare trust, you would have had the right to access and control from the age of 18 (16 in Scotland).

As the account was held in bare trust, the interest was taxable on you - was an R85 registered on the account since (unless you had taxable income in excess of your personal allowance) you would have been eligible to receive the interest without tax deducted?

If the interest being paid is lower than 3%, you would be better off taking control of the money in the account and looking at interest paying current accounts if you are eligible to open them.

If you have two monthly paying DDs and can organise £1500 in and out each month, then a Lloyds Club account pays 4% over £4000 and up to £5000 a month.

If you could open two Tesco current accounts, you could earn 3% on up to £6000.

http://www.moneysavingexpert.com/savings/savings-loophole

aparky85

Chase the interest rates. Be it Bank or Building Society, doesn't really matter IMO. Loyalty to any particular company or type of company doesn't really seem to gain anything in this day and age.