Is there even point of saving accounts if you only have 2-3k savings?

i3arty

Hi all,
So i checked saving accounts in my bank (HSBC) and the max i would get is 2.75% AER. If i want to save 3000, so paying either 25 or 250£ a year. Which will result in 4£ or 44£ over year which is not that much.
On top of that the other flexi savers have 0.10% which there is not point really at all it could as well be 0%.
I been thinking of saving my money on starling bank as you can put it into many different categories (Which will be way easier than for example HSBC where you cannot rename flex saver) People were saying "oh no their rate is really poor % no point keeping savings there" But when i checked their saving account has 0.5% rate so thats way better.


Maybe i'm wrong, maybe then meant to putting my money somewhere else. I mean i only have roughtly 2-3 savings maybe in end of this year will make 5-6 who knows, so i think % doesn't really matter much, more of a convinience unless you guys know some other saving ways.

Thanks for help !

fun4everyone

There is a point yes and it's learning about it and getting into good habits for when you have more money in the future. Plenty of people would do bad things to have £2000-3000 it's not to be sniffed at. You should look at TSB and Nationwide current accounts (if you have not already used the 5% for a year there).

swagster92

Switch to Nationwide, get £100 for free and put your money in there to get 5% return. The return you will make on this given the time to set up will be in the order of £100s per hr.

JamesWhite19

I agree with swagster92 above.


I am in a similar situation, over the last 12 months I paid in to a regular savings account (and had £1500 in my TSB account making 3%) I now have a friend referral code to use for Nationwide to get the £100 and as I now have the cash saved up I am now able to max out the £2500 at 5% in the Nationwide. I also have a HSBC Reg saver that I just opened at 2.75% and a Marcus account for spare cash at 1.35%

I am not sure what I will do once the Nationwide account stops the interest but thats a problem for next years me to think about over christmas! :rotfl:



There are probably better ways of managing it but just keep at it as over time it builds up.

i3arty

Thanks.
So basically if i open bank account with nationwide, i get 100£ for free + 5% interest rate, but can i use this account as my main bank? for example can i make payments etc with it? (Idk might sound stupid but why do you have like 3 bank accounts for different things, cant you use nationwide for saving+ spending?

YorkshireBoy

i3arty wrote: »

So basically if i open bank account with nationwide, i get 100£ for free + 5% interest rate, but can i use this account as my main bank?

You could, but why would you choose to spend your £2-3K savings? Why not "save" them instead and spend from your income which is paid into another account?

for example can i make payments etc with it?

Of course you can, it's a current account just like the one you have at HSBC.

(Idk might sound stupid but why do you have like 3 bank accounts for different things

Savings interest, Rewards, access to higher interest regular savers, BTL account, donor accounts for switching incentives, etc, etc.

, cant you use nationwide for saving+ spending?

See my first reply above.

Zero_Sum

:A

i3arty wrote: »

Thanks.
So basically if i open bank account with nationwide, i get 100£ for free + 5% interest rate, but can i use this account as my main bank? for example can i make payments etc with it? (Idk might sound stupid but why do you have like 3 bank accounts for different things, cant you use nationwide for saving+ spending?

I have a Santander 123 (lite) for household bills as I get cashback on the DD's
I have a Co-OP everyday rewards account for small spends as I get cashback on debit card transactions + £4 reward.
I have a TSB account which just holds £1500 cos i get 3% on it
I have a couple of Halifax reward accounts cos I get £4 cashback a month
I have a first direct account cos they paid me £125 to switch & have a 5% reg saver
I have a nationwide account cos of the 5% interest (which has expired) but also still have 5% reg saver
I have a tesco account cos they used to pay 3% but can still earn clubcard points from it from 'non spend' transactions
I have a lloyds account cos they paid me £125 & get free subscription to Q magazine.

sebtomato

i3arty wrote: »

I been thinking of saving my money on starling bank as you can put it into many different categories...But when i checked their saving account has 0.5% rate so thats way better.

Starling only pays 0.5% interest on balances up to £2,000, and the 0.25% after that.

Binkie_Huckaback

I'm by no means an expert, but I found that interest rates on easy-access savings accounts are so meagre I prefer to buy Premium bonds. Bit like playing the lottery, except you're not throwing your money down the drain (!) and if you haven't got much ££ to invest, it's a good way to encourage you to save more, as the more you have the more chance you have of winning something.

Probably not for everybody, but each to their own

eastcorkram

I can see the idea that it may as well go into premium bonds, but given the huge amounts of money people on this forum have invested, it's staggering to see that hardly anyone ever seems to win more than a £25 prize.

Binkie_Huckaback

Thanks, that's worth knowing. Mind you I've never known anyone win big on the lottery either, lol