Annual payments?

GreenCat80

I've done the very MSE thing this year and paid for my insurance policies as a single payment. So I don't skint myself again next year I want to put some money away each month, but where do I put it? Should it go in with my emergency fund? Or are you supposed to have different bank accounts for different things? Please be gentle, I'm terrible with money/organisation 🤦‍♀️

RacingDriver

I think it is entirely up to you, and there is no way you are suppose to follow.  If your emergency fund is in an easy access account with a market leading interest rate then I see no issue saving for insurance in the same account.  However if you think it would be easier to manage having two separate accounts you could open a different one for the insurance savings.

penners324

A couple of ways of doing it.

Savings account with a standing order from your main account, the day of or day after pay day. Just work out the monthly cost..

Some banks have pots or spaces where this can be done as well though the pot/space is part of the main account.

Rob5342

If you are terrible with money and organisation then a dedicated place is probably easier to manage. Monzo and Starling let you put things into pots which is like a section of your accont, and Chase lets you open multiple accounts easily in the app. 

GreenCat80

Thank you! At the moment I bank with Natwest and have an easy access internet savings account for my emergency fund (there isn't very much in there so I haven't worried about interest rates), but it would be a good idea to open an additional account with Monzo/Starling/Chase just for the insurance payments? I'm trying to get a mortgage atm so I guess I need to wait until that has gone through. Thanks again!

Daliah

GreenCat80 said:

Thank you! At the moment I bank with Natwest and have an easy access internet savings account for my emergency fund (there isn't very much in there so I haven't worried about interest rates), but it would be a good idea to open an additional account with Monzo/Starling/Chase just for the insurance payments? I'm trying to get a mortgage atm so I guess I need to wait until that has gone through. Thanks again!

Have you got the Natwest Digital Saver? Seems an ideal account for a Natwest customer to store some money for payments like the one you mention, as long as you don't need more than £1,000 (do you?).

There's obviously nothing (apart from needing a supported smartphone and possibly photo ID) that stops you from opening a Monzo/Starling/Chase, and one of them might be a good backup account to have, but neither of them will pay you anything like the interest you can get in the Natwest RS.

GreenCat80

Daliah said:

GreenCat80 said:

Thank you! At the moment I bank with Natwest and have an easy access internet savings account for my emergency fund (there isn't very much in there so I haven't worried about interest rates), but it would be a good idea to open an additional account with Monzo/Starling/Chase just for the insurance payments? I'm trying to get a mortgage atm so I guess I need to wait until that has gone through. Thanks again!

Have you got the Natwest Digital Saver? Seems an ideal account for a Natwest customer to store some money for payments like the one you mention, as long as you don't need more than £1,000 (do you?).

There's obviously nothing (apart from needing a supported smartphone and possibly photo ID) that stops you from opening a Monzo/Starling/Chase, and one of them might be a good backup account to have, but neither of them will pay you anything like the interest you can get in the Natwest RS.

Thanks @Daliah, I just checked, I have instant saver and savings builder. I have my EF in the builder, and I have my payments made into the instant saver and move it over to my current account as I need it. I’m probably doing banking wrong aren’t I? 🙈 do you think NW would let me open another savings account? Is there a limit? 

MovingForwards

You can have one digital and one builder with them. 

I have my annual bills in a second current account which pays interest, that way I've got a debit card attached to it.

We all do our banking differently, provided it works for you don't worry.

sheramber

You could open a digital saver account.

Jami74

GreenCat80 said:

I've done the very MSE thing this year and paid for my insurance policies as a single payment. So I don't skint myself again next year I want to put some money away each month, but where do I put it? Should it go in with my emergency fund? Or are you supposed to have different bank accounts for different things? Please be gentle, I'm terrible with money/organisation 🤦‍♀️

When I first started doing this I opened a new account every time I paid an annual bill and wanted to save monthly for the following year. I started to realise that when interest rates are low, for the amount I put away for this bills I got so little back that convenience is more important. Now I've started to merge some of my annual bills into the same account.

With Natwest you can open extra savings accounts, plus additional current accounts. It's nice to see them all in one app.