Bank account for poor credit but large deposit?

Dobbibill

One last tip from me Mrs_Ryan, when you get your insurance and/or breakdown cover you may save money using a cashback website like TCB or Quidco
You may/may not already use these but thought I would throw it in to help if you don't already.

nick74

On the subject of Toyota MMTs, I was recently talking to an AA man and he said the only times he's called out to a Toyota it's usually an MMT. The automatically operated clutch fails on them and you lose all drive. He said he doesn't usually see a manual-gearboxed Toyota from one year to the next.

xylophone

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.

Have you ever had a Nationwide Flexdirect current account?

If not and you can get one, this might be your best bet for a year - you could think again after that.

Nasqueron

Pay some of the cost on credit card for s75 protection

If you can get 0% finance then take that, don't be afraid of credit or finance if they can work for you

colsten

xylophone wrote: »

Have you ever had a Nationwide Flexdirect current account?

If not and you can get one, this might be your best bet for a year - you could think again after that.

If the FlexDirect is an option, despite the poor credit mentioned, then the OP should look for a referral (on the referrer's board), to pocket at least an extra £100 from Nationwide's recommend a friend offer. She would probably have to set up a suitable donor account for this, which should be easy enough to do if there isn't a problem with her credit file.

OP, why do you say you have poor credit, and what do do mean by it? Have you, in the last 6-12 months, been turned down for a credit card(s), any bank account, or a loan? Do you have any missed payments on your credit record? Any financial association with anyone to whom one or more of the above applies?

Missus_Hyde

nick74 wrote: »

On the subject of Toyota MMTs, I was recently talking to an AA man and he said the only times he's called out to a Toyota it's usually an MMT. The automatically operated clutch fails on them and you lose all drive. He said he doesn't usually see a manual-gearboxed Toyota from one year to the next.

We have a fifteen year old Yaris automatic, which is an absolutely cracking little car and during the ten years we've had it, we've had no problems with it (apart from age related replacements). It's just sailed through the MOT with no trouble and it has a sporty engine with enough guts to make it a pleasure to drive.

All in all a super little car, one of the best we've had.

Paul_Varjak

I am trying to 'think out of the box' here and my suggestion would only work if you have never owned property in your own name before. The suggestion is to buy a Help to Buy ISA. You already bank with Barclays and they provide the leading market rate on a Help to Buy ISA of 2.58%. You can put in up to £1200 in the first month and up to £200 in subsequent months. How much you put in is entirely up to you and you have easy access to your money.

Of course, the real reason to get a Help to Buy ISA is to buy a house so you only qualify for the government bonus if you use the money to buy a house but you still get the 2.58% Barclays interest whatever you withdraw funds for.

You cannot open a Help to Buy ISA after November 2019 but if you have opened one by then you can still contribute into it until 2029.

You won't be able to contribute to any other ISA whilst you have a Help to Buy ISA unless you, say, choose the Nationwide Help to Buy ISA which pays 2.5% but the linked cash ISA is not so great unless you also have one of their range of Flex Current Accounts.

Given the fact you wish to remain with Barclays then the Barclays Help to Buy ISA is probably the better option. Any additional savings could be put into an easy access 1.5% account as mentioned by others. Also, if your earnings improve in future you may want to think about using the Help-To-Buy ISA as the stepping stone to buying that first house!

BTW my wife has a Help to Buy ISA with Barclays and she also has a Barclays current account. AS you have a Barclays account you will probably be able to open the Cash-to-Buy ISA from Barclays online. My wife is also slow at learning to drive and also has little chance to drive between lessons as she is always working, so I understand your predicament!

Terry_Towelling

I am reasonably Ok with how the student loan works, insofar as repaying it only happens above a certain salary threshold and then only at 9% of excess earnings for a maximum of 30 years - I didn't know it was interest-free for 6 years. I would agree they are often a far better bet than paying from your own cash reserves - regardless of how rich are mama and papa.

So your plan is to borrow more than you need to survive, in order to quell your overdraft. Indeed that could prove to be quite savvy given the fact the loan will probably never be repaid in full.

As far as savings are concerned, you could dump it into a Marcus Account (if high-interest current accounts are off the list) but you could also try to recycle it into a regular saver somewhere. These will usually allow instant access to your funds but will just restrict your monthly pay-in to (typically) £250. Sadly, the best regular saver rates are usually tied to specific current accounts.

And steer clear of MMT Yarises; they are not like conventional automatics and swapping between an MMT and a true automatic on your official lessons could be problematic for you. Good luck with the driving test.

colsten

Terry_Towelling wrote: »

Sadly, the best regular saver rates are usually tied to specific current accounts.

That is true, the 5% ones are reserved to current account holders at Nationwide, First Direct, M&S, and to HSBC's hard-to-get Advance account. Though there are a number of Branch-only and straight forward RS accounts that pay between 2.75 and 3% AER and take up to £500/mth. Whether they are any use depends on whether visits to the Branch for opening and closing are reasonable.

Mrs_Ryan

Terry_Towelling wrote: »

I am reasonably Ok with how the student loan works, insofar as repaying it only happens above a certain salary threshold and then only at 9% of excess earnings for a maximum of 30 years - I didn't know it was interest-free for 6 years. I would agree they are often a far better bet than paying from your own cash reserves - regardless of how rich are mama and papa.

So your plan is to borrow more than you need to survive, in order to quell your overdraft. Indeed that could prove to be quite savvy given the fact the loan will probably never be repaid in full.

As far as savings are concerned, you could dump it into a Marcus Account (if high-interest current accounts are off the list) but you could also try to recycle it into a regular saver somewhere. These will usually allow instant access to your funds but will just restrict your monthly pay-in to (typically) £250. Sadly, the best regular saver rates are usually tied to specific current accounts.

And steer clear of MMT Yarises; they are not like conventional automatics and swapping between an MMT and a true automatic on your official lessons could be problematic for you. Good luck with the driving test.

Bit wide of the mark there. My overdraft is interest free for the next 6 years- 3 years of degree and then 3 years after as a graduate account. I have the maximum loan available to me. The loan itself is not interest free. I could probably do without the overdraft but my credit rating is so lousy that I’m hoping that having it will help. I don’t abuse it so hopefully that will help somewhat. Regarding the car I am looking for a true auto- I don’t much like the MMT ones.

Regarding my credit history- it was basically destroyed when I had to give up work when I got cancer and was subsequently left permanently disabled. I had a lot of credit but I also had a very well paid job and could manage the payments but I was off sick for 3.5 years before I got made redundant. My debts were written off but the defaults linger. I have been turned down for a better credit card than the one I have pretty recently. I have an Aqua card which I rarely use because the limit isn’t up to much (£600) but I hadn’t thought of putting a small amount on the card for the protection which I may well do then just clear it straight off. The only car finance I would likely get is the stupidly high type which I wouldn’t touch with a barge pole. My fianc! has finance with Toyota (his credit is excellent) and the only rate available (nothing personal, not tailored to his circumstances) was about 6 percent although he has had 0 percent in the past.
I have a Nationwide account but all they would offer me is the FlexBasic. It has never been used as not long afterwards Barclays offered me the student account so I never bothered using it.
However that’s an amazing idea about the Help to Buy and one which I never would have thought of!! I live in my partner’s property which he owns outright with no mortgage and this will become our home after our civil partnership ceremony. It’s unlikely I will ever need to buy a home of my own as if we ever split I would move back with family but if I could use it as a conventional saving account that would be amazing!
I will look into Marcus and also the Barclays Help to Buy, I’m going to find out tomorrow what the timescale for receiving the money will be then I can get the account set up.
Thanks so much for everyone’s suggestions and help- very much appreciated!