Bank account for poor credit but large deposit?

Mrs_Ryan

Hi all
I received notification today that I will be recieving a payment for what to me is a life changing amount of money. It will likely come in around the same time as my student loan and wages making the total deposit coming in around 14.5k.
I have a Barclays Student Additions Account with 1,000 overdraft. I intend to keep this account as I have a long history with Barclays which I would like to retain.
I will be buying a car as I’m learning to drive (I’ve looked into this already and have a fair idea what I want to spend) but i’ll still have a hefty chunk left which will have to sit around for a bit as I’ve got a wedding to pay for next year.
Is there any accounts around which would be suitable for poor credit but give me some interest? I wouldn’t mind the idea of an instant access account but any kind of bond/notice accounts are out the question as I may need short notice access.
Thank you

jonesMUFCforever

Just a quick Google brings up suitable accounts paying up to 1.5% but they are not on the high street.
If you are happy to operate the account online - fill your boots!.

Dobbibill

current accounts will give you instant access but you will need to be able to meet the criteria for earning interest. Some require x amount to be paid into the account per month, others a couple of DDs.

Depending where you opt to deposit the money this may give you access to linked regular savings.

You may need to split it up to earn the maximum instant access return.

jonnygee2

Congratulations on your windfall.

You say the amount is 'life changing". But if you aren't careful it is easily wasted. In fact for many people in your situation, this is the start of a serious debt cycle.

It's imperative you do not use the money to supplement your normal income or make any ongoing commitments you cannot afford. Can you afford the ongoing costs of a car on student income?

Sorry I know this isn't what you asked but right now you show a lot of warning signs. You've already mentioned two large financial purchases (a car and a wedding) which could both easily be more than the amount you've come into. And then you've added your regular income (student loan) to your windfall as if they were one amount. And you want instant access to these savings.

I think you should start from the beginning. How much money do you have that you do not need to spend in the foreseeable future?

zagubov

Merry Christmas and congrats! Marcus accounts are a doddle to set up and pay 1.5% after one year and will buy time until you find better investments. As a well-respected MSEer I know your new car will be second-hand and not on credit, your breakdown service will likely be autoaid. And so on!

Mrs_Ryan

jonnygee2 wrote: »

Congratulations on your windfall.

You say the amount is 'life changing". But if you aren't careful it is easily wasted. In fact for many people in your situation, this is the start of a serious debt cycle.

It's imperative you do not use the money to supplement your normal income or make any ongoing commitments you cannot afford. Can you afford the ongoing costs of a car on student income?

Sorry I know this isn't what you asked but right now you show a lot of warning signs. You've already mentioned two large financial purchases (a car and a wedding) which could both easily be more than the amount you've come into. And then you've added your regular income (student loan) to your windfall as if they were one amount. And you want instant access to these savings.

I think you should start from the beginning. How much money do you have that you do not need to spend in the foreseeable future?

I also work part time and I claim PIP (standard daily living and enhanced mobility) Without my student loan my monthly income is 1064 so not your usual student income. I have some debt but not huge amounts (other than my overdraft my only credit debts will total about 1300 which I intend to pay off in full) I intend to buy a used car to practice in when I am learning then to use when I pass my test. I live rent free with my fianc! who owns the property and I have no liability for any bills (other than my mobile and my internet)

I work for an insurance company and I have spoken to them about the possibility of a quote- they have given me a very competitive figure. I do not pay road tax as I am fully exempt due to disability and the dealership I am buying from offer a service plan which covers the cost of all servicing and offers a generous discount on the MOT.
I need a car because I live rurally and frankly what I’m spending on taxis is ridiculous. I cannot take the bus any longer for reasons which I cannot go into so I need a car. (Fianc! will supervise while I’m learning. I am also having lessons with an instructor which I use my PIP mobility for) I do not want to spend ridiculous amounts of money on a brand new car. If I wanted a new car I would have one on Motability but I don’t want a new car which is why I’m paying for it.

As for the wedding, 50 percent of it is already paid for. There’s just the registry office fees and reception left to pay for which my parents are also contributing to but the budget for that was made before I got notification of this money. It is a very small wedding with only 20 people coming- registry office then a meal in a local hotel. No evening do, no honeymoon, no over the top requirements- I am too old for all that!!!
I have my dress, fianc!’s suit, my sister’s bridesmaids dress, the rings, the photographer (BIL is doing it for free- mum paid for both the dresses) my shoes, veil, my colleague who is a trained hairdresser is doing the bridal party’s hair for free, the best man (OH dad) and my dad will wear their own suits. No ushers, no bridesmaids other than my sister who is going to be my witness- this wedding is strictly being done on a very tight budget.

Right at the minute not much as due to the time of year I have a lot to pay out!

Terry_Towelling

You don't really need to worry about your credit history for a savings account with no overdraft facility. As already suggested, try a Marcus account at 1.5%.

Not my place to say but I might suggest that you forget about the car until you've actually passed your test - used cars are often money pits and passing a test is not a 'given' - but I understand why you want the mobility.

You curiously say your employer (an insurance company) has spoken of the 'possibility' of a quote but that they've given you a competitive figure. Those two statements don't fit together very well.

Prioritise being overdraft free for a while.

Mrs_Ryan

I appreciate what you are saying but I need a car in which to practice. My lessons can be as much as three weeks apart due to both mine and my instructors illnesses/disabilities and I find that I am struggling with the time gap. I am a slow learner because of my disabilities and the time gaps are setting me back. My instructor thinks it’s a good idea that I practice in between lessons as at times I am really struggling when I go a long time without any practice. OH has always had used Yarises from this dealership and they’ve cost him next to nothing. In the last 9 years he’s had 3 and the biggest money pit was the one he bought pre-registration! I can’t go too much into detail but one of the conditions of being given this money was that I used at least some to buy a car to learn in. I appreciate what both of you have said but telling me to go against these instructions is out of the question.
I should point out that I have two English degrees so don’t need my grammar correcting but I did write this post late at night! I have had a quote.
I’m not sure why you think my overdraft is such a problem- my student loan clears it and I take it you are aware that it is interest free for the next 6 years?!
By the time I have cleared my debts, put money aside towards the wedding and a car, paid for a short break for myself and OH in February and some new glasses for myself I’m still looking at having a couple of K left that I would like to put somewhere to earn a bit of interest on.

Mrs_Ryan

zagubov wrote: »

Merry Christmas and congrats! Marcus accounts are a doddle to set up and pay 1.5% after one year and will buy time until you find better investments. As a well-respected MSEer I know your new car will be second-hand and not on credit, your breakdown service will likely be autoaid. And so on!

Indeed it will be second hand! Paying cash (well, Debit card!) and I hadn’t thought about breakdown but I shall take a look! Merry Christmas to you too!

Terry_Towelling

You are quite right to want to practice between official lessons and that is a good way of improving your skills. I had no idea purchasing a car was one of the conditions attached to the cash gift - you never said; I just know how much it can cost to run a car, so was trying to be helpful.

We have had 2 Yarises - the first was rubbish - it was one of those sort-of automatics (MMT or Multi-Mode Transmission they call it). It kept malfunctioning in dangerous situations and we got it swapped for a manual - which proved very reliable.

Only two English degrees? - you really must try harder. Anyway, apologies for giving the impression of being critical of your grammar. I was actually confused by your wording. The 'possibility' of being giving a quote at the same time as having already been given a 'very competitive figure' seemed contradictory.

Sorry but I've done it again and given the impression of being critical. I didn't say your overdraft was 'such a problem'; I said you should prioritise being overdraft-free.

Maybe it's just me but I don't understand how you are viewing your student loan. You give the impression of viewing it as savings. Presumably you have to use the loan to pay for your education, so it won't be in your accounts for long. I have no knowledge of the loan arrangements (interest rates/interest-free period etc) but aren't you just replacing an overdraft debt with a loan debt. If you are lucky, you won't have to pay the loan back, as much of that depends on your future earnings.

Mrs_Ryan

Student loans are different from overdrafts. Unless you are impossibly rich (or mummy and daddy are) it’s impossible to study without one. I have a tuition fee loan which is paid directly to my university which is different from my maintenance loan which is paid to me. Student loans aren’t repayable on demand like overdrafts are. Even the esteemed Martin points out that student loans are a bit different. There are actually plenty of people who do save their loans and then at the end they have made money from it. It’s more of a graduate tax than a loan. It’s perfectly possible to do uni without an overdraft (I did both my nursing course and my first degree without one) but extremely difficult without a student loan unless like I say one is very very rich!
Apologies for being sketchy- it’s a really difficult and complex situation I’m in unfortunately.
Thanks for the advice- appreciated. I look after my fianc!’s car (insurance, maintenance etc) so I know to the last penny what they can cost to run. He’s only ever driven manuals and never had an issue- working in insurance I’ve heard horror stories about every car out there so I guess I had to pick one I liked the look of! I know autos can be really difficult to maintain- I originally wanted an Aygo but my instructor advised me against it- they have one of those MMT gearboxes and I’m not sure I like the sound of them. I’m just looking at a straight auto. Due to my disabilities I can’t drive a manual so I know I’m limited. I’ve spoken to loads of people and all roads have led back to the Yaris- however the salesman who sold my fianc! his last three cars is calling me on Thursday to discuss. I trust his opinion 100 percent as he knows both of us now and he’s never tried to sell us something we’re not 100 percent happy with. He has said he rather it takes weeks to find the right car rather than push through a sale we’re not happy with. He calls a spade a spade and if he thinks it’s wrong for me he will tell me straight.
I know I should have said I spoke to work about a quote I also ran the quote on a comparison website on the type of car I’m looking at and my work actually came out the cheapest.