My first savings account

cally6008

I want to start putting some money aside to save for a rainy day, car problems or vet bills.
It's only going to be say £10 per week from my wages and whatever I make from survey sites etc so not big bucks.
Plus I'll add some of what OH gives me when he gets his money

I only have a basic bank account with HSBC so not allowed to open a savings account with them.
Ideally looking for an account that can be opened with £1 and be managed online.
Easy access would be a big bonus as cats and cars don't give warning when they are going to break or fall ill

I don't think an ISA would suit my needs at the moment.
Monthly interest would be better for me, prefer to get small amount monthly instead of having to wait a full year for it.

I was looking at the Post Office online saver but have been put off slightly by comments about withdrawing on here - https://www.postoffice.co.uk/savings-accounts/online-saver

I do like the look of the Ford Flexible Saver although I'm not sure if there's a negative side to it that I'm not aware of yet - https://www.fordmoney.co.uk/savings-products/flexible-saver

It would be good if I could deposit money into the account using my bank and also send money from paypal

Is there any other accounts I should have a look at before making a final decision ?

Thank you

EDIT to add - or would another basic bank account suit my needs better ?

ricky_v

Switch from your basic account to Nationwide flex direct as that pays 5% interest for the first year.

https://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits

If you need to have the money in a seperate account to avoid temptation, they have a linked regular saver also paying 5% interest.

These accounts pay the highest rate of interest, alternatively you can switch to HSBC, get £200 and have a 5% reg saver.

https://www.moneysavingexpert.com/banking/compare-best-bank-accounts#hsbc

ValiantSon

ricky_v wrote: »

Switch from your basic account to Nationwide flex direct as that pays 5% interest for the first year.

https://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits

There is little point opening a FlexDirect account unless you have £2,500 sitting around waiting for a good home. It is a one time only offer, so to make the best of that offer you'll need £2,500 of existing savings. If you haven't got that then don't bother.

It's also possible that the OP wouldn't be given the account anyway. I don't know the reasons why they currently only have a basic bank account, but if it is because they wouldn't qualify for another type of account with other banks then it is very unlikely that Nationwide would give them a FlexDirect account.

ricky_v wrote: »

If you need to have the money in a seperate account to avoid temptation, they have a linked regular saver also paying 5% interest.

These accounts pay the highest rate of interest, alternatively you can switch to HSBC, get £200 and have a 5% reg saver.

https://www.moneysavingexpert.com/banking/compare-best-bank-accounts#hsbc

This misses the point that the OP is already an HSBC customer. They have a basic bank account, so it is pretty unlikely that they would qualify for an Advance account, which is targeted at higher income earners (minimum monthly pay in £1750).

OP you are best to have a look at the regular savers on this thread, as they will probably offer you the best rate of interest in your circumstances: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts

AndyPK

I do wonder if a regular saver is what is required?


Some require a minimum and regular pay in (monthly)


e.g BOS requires £25/month minimum pay in.


The interest is going to be hardly anything. (around £15 year at a guess).
Maybe a normal savings account is what is required? Less interest but more flexible.


Nationwide has a nifty savers function on their app, where you can move £10 or £20 into the savings account

cally6008

The reason I've got a basic bank account is because I got into financial difficulties with Barclays, going overdrawn, getting charged, vicious circle. Barclays flat out refused to help at all so I went to HSBC and was able to open a basic account.

Account is now looking ok we're one month ahead for bills but it's took some getting there.

My credit rating is probably poor-fair now but I doubt I would be able to open a "normal" account or upgrade existing account. I get paid cash-in-hand and am on national living wage so low earner.

Definitely don't have £2500 around the place so although Nationwide looks good, it's out I'm afraid.

newuser78

I was in a similar position with a basic account, etc. Do you have credit card builder? If not, I would get this ASAP - the sooner you rebuild your credit worthiness, the sooner you can get access to better accounts (and better returns).

If you are unable to put away £25/month, then consider opening a normal savings account at your bank HSBC and put in as much as you can. After a year, you could then ask your bank to upgrade your account from basic - this is far easier as you are already a customer.

cally6008

I don't have a credit card builder. I got into difficulties with capital one as well. Ideally would like to avoid a credit card if possible.
Mindset has changed to "if we don't have the money, we go without until we do have the money"

I can put £25 a month away but there might be a month where I can't.
The problem I have is that I can't open any savings accounts with hsbc because I have a basic bank account with them,

ValiantSon

AndyPK wrote: »

I do wonder if a regular saver is what is required?


Some require a minimum and regular pay in (monthly)


e.g BOS requires £25/month minimum pay in.


The interest is going to be hardly anything. (around £15 year at a guess).
Maybe a normal savings account is what is required? Less interest but more flexible.


Nationwide has a nifty savers function on their app, where you can move £10 or £20 into the savings account

Not all regular savers require a monthly minimum deposit: in fact many don't. Leeds BS, Virgin Money and Santander are all examples of regular savers that don't require minimum monthly deposit.

While the interest earned won't necessarily be massive in a regular saver, it will still be more than in an easy access account, because the interest rates are higher in a regular saver!

cally6008

I went to local HSBC branch today and opened a Flex Saver account. The interest is rubbish at 0.5% but I can log on to my online banking and see both balances on the same screen. The lady did try and upgrade the account from basic to normal but it came back as referred and then a no. I did say to her that I would be suprised if it was a yes.

I think I might open a Ford account as well and then half of the money my OH gives me can go in that account and be saved towards the car

ValiantSon

cally6008 wrote: »

I went to local HSBC branch today and opened a Flex Saver account. The interest is rubbish at 0.5% but I can log on to my online banking and see both balances on the same screen. The lady did try and upgrade the account from basic to normal but it came back as referred and then a no. I did say to her that I would be suprised if it was a yes.

I think I might open a Ford account as well and then half of the money my OH gives me can go in that account and be saved towards the car

The Virgin Money Regular E-Saver will pay you more interest and give you unlimited withdrawals. It is opened and managed online and there shouldn't be a hard credit search as it is only a savings account.

FatherAbraham

cally6008 wrote: »

I went to local HSBC branch today and opened a Flex Saver account. The interest is rubbish at 0.5% but I can log on to my online banking and see both balances on the same screen. The lady did try and upgrade the account from basic to normal but it came back as referred and then a no. I did say to her that I would be suprised if it was a yes.

Well done for trying -- originally you thought it wasn't possible.

Actually, it was always unlikely that a basic-bank-account holder couldn't have a savings account, because a savings account, like a BBA, poses no credit risk to the provider -- it can't be overdrawn.

Don't sweat too much about the interest rate -- the important thing is to build up some capital for future needs. Although you could get more elsewhere, the absolute sum you'd be losing is still small, and the convenience of a savings account which you see every time you access your main account may be worth having.

Warmest regards,
FA