Locked savings please help!

jollymolly_2

I waste a lot of money each month. I really want an account that I can put any sum of money in each month that I can keep locked for a few years. The only accounts that I have seen only allow you to deposit within the first 14 days which is no good for me as I want to keep saving with the inability to access my money! I have no idea what I’m looking for, do these types of accounts even exist? Thanks for reading!

wmb194

jollymolly_2 said:

I waste a lot of money each month. I really want an account that I can put any sum of money in each month that I can keep locked for a few years. The only accounts that I have seen only allow you to deposit within the first 14 days which is no good for me as I want to keep saving with the inability to access my money! I have no idea what I’m looking for, do these types of accounts even exist? Thanks for reading!

For "any" sum of money you could just keep opening new savings bonds that have no in-term access e.g., you can open Nationwide's online fixed rate savings bonds with just a pound, maximum £5m. Otherwise for up to c.£250pm you could look for a multi-year regular saver with no access e.g., Staffordshire Railway BS but I think this has changed to Staffordshire residents only now.

https://www.nationwide.co.uk/savings/fixed-rate-online-bond/

eskbanker

Another option potentially worth considering is notice accounts, where you can access the money but only by giving weeks or months advance notice, which ought to curb spending urges if it's primarily a willpower issue....

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#notice

ForumUser7

It depends really.

The kind of product you're looking for would be a regular saver bond. There are a few listed on this page: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/ but most of these allow instant access.

Beehive Money looks like it doesn't offer early closure, so may be what you're looking for - but of course this means you would be unlikely to be able to access this money in an emergency. As with all no closure accounts, you also couldn't move your funds elsewhere or to another of their accounts if a better rate became available. The better choice may be accounts with strong deterrents to closure such as the First Direct regular saver that massively reduces the rate should you close it early. You would of course lose out on lots of interest, but at least you could access the funds in an emergency. Both those accounts are approx. 1 year only though.

You may have to look a bit further afield for longer regular saver bonds.

If I was in your situation, and didn't want to constantly make withdrawals without thinking, I would probably open regular savers that you cannot make withdrawals from but that you can close early, should you need the funds for whatever reason such as an emergency. This seems like it'd be ones like the Halifax 2.5%, Principality 2.8%. All the regular savers I have mentioned are in the above mse article, I figured it would be more helpful to attach 1 link to them all rather than several different links.

Other options may be notice accounts - https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess I believe you can continue to add funds to these after the 14 days, but I'm not 100% sure so worth checking with all these different accounts that they meet your specific needs.

Another, albeit more drawn out, option would be to open a new fixed rate bond every couple of months and put that deposit into there each time. This would of course put you in a situation whereby you'd need a clear record, or spreadsheet, but it'd also mean if you time it right you could have some funds maturing every couple of months in the future. 

Please note this is not professional financial advice, and comes with no form of guarantee, but I hope you can find what you're looking for!

km1500

Atom bank for example allow you to open as many 5yr bonds as you wish min deposit £50

https://www.atombank.co.uk/fixed-saver/five-year-annual/

if you go this route my advice would be to also open an instant access account so you don't have to keep chsnging payee details at your bank ie xfer money from bank to IA account, then move to bond.

MX5huggy

Notice Accounts do this, you have to give notice to make withdrawals, the Best Buy has a 120 day notice requirement. Build up a balance then open a multi year fix to move the money into.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Consider regular savers although your money is not locked away you get better rates, after a year again move to a fixed product. 

Daliah

Have a look at Fixed term Shawbrook ISAs. They generally allow further deposits to be made throughout the duration. They may also offer this for their non-ISA fixed term accounts, you'd have to ask them. Withdrawals from ISAs are possible at a penalty, withdrawals from fixed term non-ISAs are not possible before maturity.

wmb194 said: Otherwise for up to c.£250pm you could look for a multi-year regular saver with no access e.g., Staffordshire Railway BS but I think this has changed to Staffordshire residents only now.

The open-ended Staffordshire Railway BS RS is available to all UK adult residents, and takes between £25 and £500 a month. It's got a slightly longwinded application process, and allows max 4 withdrawals per Society year (Nov 1 to Oct 31). Withdrawals have to be requested in writing.

wmb194

Daliah said:

Have a look at Fixed term Shawbrook ISAs. They generally allow further deposits to be made throughout the duration. They may also offer this for their non-ISA fixed term accounts, you'd have to ask them. Withdrawals from ISAs are possible at a penalty, withdrawals from fixed term non-ISAs are not possible before maturity.

wmb194 said: Otherwise for up to c.£250pm you could look for a multi-year regular saver with no access e.g., Staffordshire Railway BS but I think this has changed to Staffordshire residents only now.

The open-ended Staffordshire Railway BS RS is available to all UK adult residents, and takes between £25 and £500 a month. It's got a slightly longwinded application process, and allows max 4 withdrawals per Society year (Nov 1 to Oct 31). Withdrawals have to be requested in writing.

Oh, yeah, you can make withdrawals, I was thinking about another. Anyway, I was correct about the new restriction:

"Available to UK citizens/residents living in Staffordshire"

Daliah

wmb194 said:

Daliah said:

Have a look at Fixed term Shawbrook ISAs. They generally allow further deposits to be made throughout the duration. They may also offer this for their non-ISA fixed term accounts, you'd have to ask them. Withdrawals from ISAs are possible at a penalty, withdrawals from fixed term non-ISAs are not possible before maturity.

wmb194 said: Otherwise for up to c.£250pm you could look for a multi-year regular saver with no access e.g., Staffordshire Railway BS but I think this has changed to Staffordshire residents only now.

The open-ended Staffordshire Railway BS RS is available to all UK adult residents, and takes between £25 and £500 a month. It's got a slightly longwinded application process, and allows max 4 withdrawals per Society year (Nov 1 to Oct 31). Withdrawals have to be requested in writing.

Oh, yeah, you can make withdrawals, I was thinking about another. Anyway, I was correct about the new restriction:

"Available to UK citizens/residents living in Staffordshire"

Oh yes, you are right. I had forgotten that this restriction got recently imposed - presumably after a stampede from MSEers (incl myself) living outside Staffordshire.

Brie

What about setting up a monthly standing order to NS&I to buy premium bonds.  Always accessible but would take time to get the ££, might win a prize, safe.

adam06_2

If you are looking to the longer term maybe look at increasing your work pension contributions.
You won't pay tax on pension contributions (until withdrawal when you are normally on a lower tax bracket if paying tax at all) and I find I don't miss money that comes out of my pay as it never hits my bank account.

You could also look at maybe over paying mortgage if you have one... Again you don't really miss it as it will automatically come out each month.