Savings v Current

venomx

For receiving salary and transferring spending money a current account is best right?
Is it possible to make bank transfers online and pay bills with a savings or not?

colsten

Most savings accounts now require a linked current account, and all deposits and withdrawals have to go via the linked account. The more modern savings accounts also support Faster Payment, so it's easy to make instant transfers from instant access savings accounts. Very few savings accounts come with an app, though, so you have to do it via online or telephone banking. One or two savings accounts come with an ATM card, so you can withdraw cash directly. These have terrible interest rates, though, so you'd need to be quite desperate if you used one of those.

For those reasons, savings accounts are not a good choice for receiving salaries and/or paying bills.

SnowTiger

venomx wrote: »

For receiving salary and transferring spending money a current account is best right?
Is it possible to make bank transfers online and pay bills with a savings or not?

A few, such as Chelsea/Yorkshire Building Society will.

Yorkshire bank offers a savings account the comes with a debit card.

However, as I mentioned elsewhere, a TSB Classic Plus account pays more interest than most savings accounts.

pinkdalek

venomx wrote: »

For receiving salary and transferring spending money a current account is best right?
Is it possible to make bank transfers online and pay bills with a savings or not?

Answer to both your questions is yes. However savings can be restricted when it comes to paying bills, most banks won't let you set up direct debits or standing orders on them.

Current account will appear on your credit file when you initially open it and also full current accounts will have the option of overdrafts (if approved) again something that can help your credit rating if used correctly. This can in effect help your credit rating should you need to apply for credit in the future eg mortgage/loan.
Having a current account is more likely to be more beneficial to you for your salary and day 2 day bills, have a savings to save any surplus money away for rainy days etc.

[Deleted User]

OP seems to like doing things backwards.

Current account for savings and savings accounts for spending and salary payments to go to...

https://forums.moneysavingexpert.com/discussion/6044400/opening-account-with-nationwide

venomx

I took the advice and didn't get a savings account in the end

pinkdalek

venomx wrote: »

I took the advice and didn't get a savings account in the end

Open a simple savings account alongside your bank account, some banks may do "Save the change" where your debit card payments are rounded up and the change is transferred into your savings, before you know it you've a nice little amount saved up.
Or alternatively you could set up a regular transfer on pay day, before long you won't miss it as you get used to the money left in your current account and budget accordingly, then when something happens you've a pot of money to fall back on and then not relying on credit card/overdraft or struggling for the month.

Also if you end up having an expensive month, you can always transfer some of the savings back. Give it a go. You know how the saying goes...from small acorns.....

headoffinance

Hello!

I wouldn’t see the point in not having a current account, mainly because what about creditors or utility? Even if you don’t use it much it’s always best to have a current account!

Regards,
Headoffinance