Starting to save, Lloyds or Nationwide?

AimeeElizabeth19

Hi guys,
I’m looking to switch current accounts (mine is only basic and boring at the moment) with a view to opening an accompanying regular saver account. I’m leaning towards either the Lloyds club account or the Nationwide flexdirect (and their respective regular savers) and would really like some opinions on the banks and accounts.
The Nationwide regular saver has a higher rate at 5%, but the Lloyds club account has a better rate than the flexdirect (the rate of which drops to 1% after a year) and applies it up to a higher balance of £5k.
To give some background, I’m in my mid-twenties, have a salary that meets the minimum pay-ins, and I’m a home owner with all the usual direct debit bills. I’m aiming to save around £3k in the next twelve to eighteen months for travel and a possible house move.
Any idea which account(s) would be the most beneficial?
Thank you for your time
PS I'm happy to look at other banks too!

grumbler

AimeeElizabeth19 wrote: »

The Nationwide regular saver has a higher rate at 5%, but the Lloyds club account has a better rate than the flexdirect ...
... I’m aiming to save around £3k in the next twelve to eighteen months for travel and a possible house move.
Any idea which account(s) would be the most beneficial?

Is it not a primary school maths?
£3000/12=£250
So, it's all covered by a regular saver, and the current account rate almost doesn't matter unless your average balance is really big.

Also, you can get £100+ for switching to Nationwde, while, IIRC, Lloyds offers nothing ATM.

binaryuniverse

If you no saved money to begin with, then an account with a high interest rate is not going to give you the best deal, especially if it only lasts for a year. To maximise those kind of offers you really need to put in a lump sum for the max amount you'll gain interest on, and keep it in there for for the full term.

So a switching bonus will probably give you more money than interest. Plus give you a starting point for saving.

Use the link for TSB on this site
http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#tsbswitch

And you can get £125 and 3% interest up to £1500. You can also open a regular savers account, which pays 2% (used to be 5% on both, but they reduced in at the start of the year). Which is a good starting point. Once you have £2500 saved up, open the Nationwide account (if the offer is still there) and stick it all in there for 12 months, while you carry on building the TSB accounts back up again. Just remember to pay in the minimum, to the Nationwide account, and transfer it out again.

Wizzbang

Plus, Lloyds customer service is terrible! Nationwide is run differently, as it's a building society. I'd recommend it any day and tell anyone and everyone to stay away from Lloyds at all costs!!!

Jo_Blogs

binaryuniverse wrote: »

If you no saved money to begin with, then an account with a high interest rate is not going to give you the best deal, especially if it only lasts for a year. To maximise those kind of offers you really need to put in a lump sum for the max amount you'll gain interest on, and keep it in there for for the full term.

So a switching bonus will probably give you more money than interest. Plus give you a starting point for saving.

Use the link for TSB on this site
http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#tsbswitch

And you can get £125 and 3% interest up to £1500. You can also open a regular savers account, which pays 2% (used to be 5% on both, but they reduced in at the start of the year). Which is a good starting point. Once you have £2500 saved up, open the Nationwide account (if the offer is still there) and stick it all in there for 12 months, while you carry on building the TSB accounts back up again. Just remember to pay in the minimum, to the Nationwide account, and transfer it out again.

I agree .

Wizzbang wrote: »

Plus, Lloyds customer service is terrible! Nationwide is run differently, as it's a building society. I'd recommend it any day and tell anyone and everyone to stay away from Lloyds at all costs!!!

Personally, never had a problem with either .

northwalesd

Wizzbang wrote: »

Plus, Lloyds customer service is terrible!

I've never had an issue with Lloyds CS, unlike Nationwide's who didn't listen and were patronising down the point of actually being rude. Once my 5% interest on flexdirect is up, I'm off.

AimeeElizabeth19

Thank you for all your advice and opinions, it turned out my friend has a Nationwide account and by recommending me we both get £100 if I switch in 90 days, woohoo! With the 5% interest for a year it worked out best for me

avian946

AimeeElizabeth19 wrote: »

Thank you for all your advice and opinions, it turned out my friend has a Nationwide account and by recommending me we both get £100 if I switch in 90 days, woohoo! With the 5% interest for a year it worked out best for me

bare in mind you can also recommend othr people and earn extra cash for them switching as well! although nationwide cap it at £500 a year for recommendations. im already planning on asking a few friends and family members to open an account and switch in, even if they just set up an account elsewhere for the purpose of switching in.