Savings "Pots"

BooJewels

colsten wrote: »

They might suit you but they are anything but MSE.

That wasn't what the OP asked for - they asked for accounts with 'pots' for budgeting.

Standard instant access accounts neither have opening requirements...

They perhaps don't feel as though they do, if you can easily meet those requirements. I can't - so can't avail myself of them. But my banking arrangements aren't what the thread is about and the subject is now closed.

colsten

BooJewels wrote: »

They perhaps don't feel as though they do, if you can easily meet those requirements. I can't - so can't avail myself of them. But my banking arrangements aren't what the thread is about and the subject is now closed.

Standard instant access accounts don't have opening requirements above and beyond those you would have had to meet for your Halifax savings accounts. Instant access savings accounts are, in fact, the easiest-to-open accounts I can think of, and I have applied for several dozen accounts in my time.

EarthBoy

colsten wrote: »

Standard instant access accounts neither have opening requirements beyond a £1 initial deposit, or operating criteria. Moreover, meeting the operating criteria for the likes of the FlexPlus or TSB Plus are very easily met by anyone who actually has even small savings.

The accounts are simple to set up and operate, but not everybody can meet the requirements to earn the interest. FlexPlus needs £1000 paying in every month, and TSB Classic Plus needs £500 paying in every month. Yes, these amounts can be paid in and transferred straight out again and you can do it automatically by standing orders, but you still need the money in another account in order to transfer it in.

If you haven't got any savings already and want to put money aside in "pots" for particular circumstances, the Halifax savings accounts serve a useful purpose, even if they will earn you next to nothing in interest.

LobsterMemory

While they do, the fact is, moving away from the specifics, that the convenience of using these app-based products is costing more than you could be making by using a straightforward £1-to-open easy-access account like Marcus and a pen-and-paper

Not sure I've worded that right - what I mean is you're getting up to 0.5% on the apps and could be getting 1.45% so it's costing more than 0.95%

colsten

EarthBoy wrote: »

The accounts are simple to set up and operate, but not everybody can meet the requirements to earn the interest. FlexPlus needs £1000 paying in every month, and TSB Classic Plus needs £500 paying in every month. Yes, these amounts can be paid in and transferred straight out again and you can do it automatically by standing orders, but you still need the money in another account in order to transfer it in.

Too many people seem to wrongly assume that the monthly deposits need to be made in a single sum. Whilst it would obviously tedious to e.g. meet the £1,000 monthly deposits by 1,000 £1 deposits, it is technically possible. More realistic is to shuttle enough £100, £200, £300 etc amounts to and fro.

EarthBoy wrote: »

If you haven't got any savings already and want to put money aside in "pots" for particular circumstances, the Halifax savings accounts serve a useful purpose, even if they will earn you next to nothing in interest.

I will always maintain that starting out with a 0.2% AER account when you just as easily could start out with a 1.45% AER account is anything but MSE.

EarthBoy

colsten wrote: »

Whilst it would obviously tedious to e.g. meet the £1,000 monthly deposits by 1,000 £1 deposits, it is technically possible. More realistic is to shuttle enough £100, £200, £300 etc amounts to and fro.

Yes, but if you only have, for example, £5 to start with, you'd spend all day moving it in and out for very little benefit. As you say, that's not very realistic.

colsten wrote: »

I will always maintain that starting out with a 0.2% AER account when you just as easily could start out with a 1.45% AER account is anything but MSE.

True, but you have to balance the advantage of the interest rate against the work involved to operate the account for the total sum involved. 0.2% interest on £5 is 1p per year, whilst 5% interest on £5 is still only 25p per year. For most people, it wouldn't be worth the bother.

My point is that starting with the 0.2% accounts is useful when you only have small sums to save, but I would agree that you'd need to start considering better alternatives when your money grows sufficiently to make earning extra interest worth the work needed to operate higher paying accounts.

Brodiebobs

I use Monzo for general budget pots, which I tend to spend that month/couple of months and not bothered about interest. Like food, entertainment, clothes etc.

Then I set up a regular saver linked to main bank account which has a better rate (5%) which matures in Nov every year which is loosely marked for Xmas. Works for us