Stick or twist

Stb_2

Evening all,

May I ask your advice please? I have set myself the personal goal of never going into my overdraft again, I am doing this through Ynab and after the first 4 weeks it seems to be working, I finished last month £34 in credit (I cannot tell you how amazing this felt) so here the big question.

Through Ynab I'm saving for future commitments, I currently bank with first direct so the first £250 of over draft is free but the interest rate On all savings is appalling, I am tempted to switch to zNationwide to better reward myself for saving with 5% on current account and 5% flexible saver attached, for this year these work and I get a year of emergency over draft I shouldn't need.

Does anyone have any alternative strategies or concerns about why this might not be a good plan? Ultimately I could always revert to first direct if overdraft rule fails (wife wants divorce, life expensive at moment.... But still I am saving each month and it is working)

Thanks for any advice

Stb

jimjames

Why do you need to switch? You can have more than 1 account. But obviously it makes sense to use an account where you are paid interest rather than one that you are not.

Stb_2

Simplicity I don't want any more complexity in my life that I have already and recognise financial mgt is not currently one of my strengths

knack92

Well done on ending last month in credit!

Have you considered that having two accounts may actually help you save by keeping your savings isolated from money to spend?

You could open Nationwide FlexDirect for savings purposes and carry on using your existing account for day to day spending. YNAB will help you manage this - the budget doesn't mind where the money is saved. Doing this will have you thinking about your money more and should help make you better at financial management.

If it doesn't work out you could switch First Direct to Nationwide for £100 if you have someone who can recommend you.

Stb_2

Ah ok I see what you mean, what about minimum pay in and number of dd requirements to qualify, is there a way I can make sure this happens regardless of what's actually needed I.e cross firing or something?

knack92

Stb wrote: »

Ah ok I see what you mean, what about minimum pay in and number of dd requirements to qualify, is there a way I can make sure this happens regardless of what's actually needed I.e cross firing or something?

Nationwide requires £1000 per month pay in from an external source. But it can come in and out.. or go out and in. No direct debits required for interest but 2 required to be switched for £100 switch incentive.