Current Account Help!

DonnieY

Hi,
I'm not sure if this is in the right section or not but here goes....

I'm a student living at home and do not have any student loans or grants therefore do not require a student bank account.

I'm currently on Alliance & Leicester Premier 21 however this requires a minimum £250 to be put in every month and the interest rate is rubbish.

I've tried applying to Cahoot and Smile current accounts as Martin recommend however students can not apply for these accounts. The problem with the Alliance & Leicester account is that it gives an interest of 0.01% of balances over £1000.

I'm currently in a part time job but would like an account with better a interest rate and if possible no minimum amount to be put in every month. Please HELP!

Thanks in Advance

Rafter

Donnie,

You are unlikely to qualify for any of the top paying current accounts that all require a minimum deposit.

I suggest you get yourself a high interest online savings account to operate alongside your current account. i'd suggest and A&L one so that you don't lose 3 days interest every time you do a bacs transfer and so you can move money back to your current account quickly if you need it.

If you are only keeping small amounts in your current account anyway I wouldn't lose sleep over losing a few pence in interest.

Good luck

R.

Mikeyorks

Rafter is spot on ..... forget the high interest rate current accounts, for the time being, as you don't currently fit the profile for them.

Get a standard (as opposed to 'high interest') current account from a provider that operates online websavers. Then you simply keep your majority money in the websaver but are able to move money between the accounts at a moments notice.

As well as Rafters suggestion of A&L - look also at the Halifax possible pairings. Standard current account at 1.5% - and currently 5.3% (file an R85 on both accounts if you're not earning above your personal allowance - so you get the interest gross) on their websaver. (But up to 6.87% on their fixed rate Web - if you've accumulated some spare money you can tie up for 3 months?)

Sensible route to go on your existing profile - minimal money in the current a/c and maximum in the savings account. BUT - do get yourself an agreed small overdraft on the current account (say £100) .. if you tread that path. You only pay if you use it - and it saves charges if you get mixed up and inadvertently put the current account in the red.

DonnieY

Appreciate the replies. The account I have at the moment has an online web saver attached to it but I'm not sure about how quickly you can take money out at a moments notice.

The reason i wanted a current account with decent interest was because as a student i cant afford to tie money up into savers and therefore need the money accessible at all times in my current account.

Are there any particular accounts that anyone could recommend for this situation I'm in?

Thanks in advance,
Donnie

HannaB

How about an instant access ISA for your savings? These are higher rate, tax-free savings and, as the name suggests, instant access. You can only deposit £3000 in any tax year though. But if you are lucky enough to have this much to save as a student, you are more money-savvy than I was.

Mikeyorks

DonnieY wrote: »

The reason i wanted a current account with decent interest was because as a student i cant afford to tie money up into savers and therefore need the money accessible at all times in my current account.

In the time it's taken me to put the quote up - and type this single line ..... I could have transferred money from my current a/c to my websaver .. and back again! Twice in fact .. it really is that quick if you get the right pairing within the same provider.

Your OP says you want a current account? Yet the money you have available monthly denies you the better rate ones as you can't meet minimum input payments. So, as described - you go for a minimalist current account, but satisfy your desire for better interest by immediately transferring any money to a better rate websaver. But you do that with the same provider and who operates realtime transfers. So you can - at a stroke move your money back to your current account if you need it!!!!

How is that tying your money up? You can surely predict your money on a day to day basis - and you have access to your PC to move anything you need in the evening? And you have a small agreed overdraft to cope with the odd mathmatical 'whoops'.

You can't satisfy your criteria of all your money in your current account and
good interest on it....... if you can't get a high interest rate current account, because of your existing financial profile! So, faced with that you have to look at alternatives ...... as unanimously provided in the first two replies!;)