Where to store emergency fund and savings?

BradPayne

Hi there!
I'm new here and had a quick question, which I was hoping someone could help me with.

I'm currently saving a £1000 emergency fund while I clear my other debts, but I wasn't sure where to store it. I would rather not have it in cash. I'll also be adding more to it so I can pay off debts that have to be paid in one lump sum as they do not allow you to pay more off a month, it's the full figure or the monthly payment.
I'm currently with Santander and was looking at their eSaver account, would this fit the needs I have? I'm a bit new to this, and I feel like it's probably a silly question. :rotfl:

Thanks for your time,

Brad.

smithers1981

Marcus instant access 1.5% should fit purpose. Are you sure you cannot overpay any of your debts?

BradPayne

smithers1981 wrote: »

Marcus instant access 1.5% should fit purpose. Are you sure you cannot overpay any of your debts?

Thanks for the speedy response! Looking into it now and it definitely fits my purpose, thank you.

I can on some of the debts, which I will be doing, but there's a couple that are over £1500 and they will only take the lump sum, no extra payments, so I will be saving it up in this account, as I feel my money burning a hole in my pocket if it stays in my current account.

PRAISETHESUN

I'd throw any spare cash you have at your debts - saving at 1.5% is actually costing you money if you have debt with an interest rate any higher then that. There's a very good article on this here: https://www.moneysavingexpert.com/savings/pay-off-debts/

MovingForwards

I've opened up a dedicated current account for my debt payments and savings towards the debts, means it's all earmarked and once I hit a certain figure I can make a f&f offer to clear a debt.

I've also got various pots of savings with another bank.

My regular bills come out of my main current account.

Is that something you could consider?

Zero_Sum

For £1000 youd be better off with a high interest current account like Nationwide flex direct or TSB's

fun4everyone

Zero_Sum wrote: »

For £1000 youd be better off with a high interest current account like Nationwide flex direct or TSB's

This is best for £1000 (Nationwide flexdirect first if you qualify for the 5% if not then TSB classic plus for 3%)

BradPayne

PRAISETHESUN wrote: »

I'd throw any spare cash you have at your debts - saving at 1.5% is actually costing you money if you have debt with an interest rate any higher then that. There's a very good article on this here:

Very interesting read and definitely something to consider. I do feel like this would make more sense to do instead of the emergency fund. Thanks.

MovingForwards wrote: »

I've opened up a dedicated current account for my debt payments and savings towards the debts, means it's all earmarked and once I hit a certain figure I can make a f&f offer to clear a debt.

I was considering this, wasn't sure if it would be better in a normal dedicated current account or a savings account though. I guess if the money is going in and out constantly a current account may be better. Thanks.

Zero_Sum wrote: »

For £1000 youd be better off with a high interest current account like Nationwide flex direct or TSB's

Will look into this also, thank you.