Current Account For Son

WSB

Hi,

My 23 year old son has just started his grad job and will be taking home around £2K per month.
He's living with us and has no debt or balances to pay off.

He has a Santander account he setup during his 1 year student industrial placement which earns 0% interest but is looking at switching to an account in which he can earn some interest.

He's not bothered about overdraft facility.  His main intention is to earn interest on his balance and maybe even get a switching bonus.

Grateful for any advice or recommendations.

Many Thanks

artyboy

Why not suggest to him that he opens a savings account that he can put any spare per month into? Much more choice available rather that trying to make a current account be something that it really isn't...

Brie

He's a big boy now so get him to do the leg work.  It's the best way for him to learn.

He might start here.....Best savings accounts: 5.2% easy access or 5% fixed rates (moneysavingexpert.com)

WSB

artyboy said:

Why not suggest to him that he opens a savings account that he can put any spare per month into? Much more choice available rather that trying to make a current account be something that it really isn't...

Going to do that as well. Just wanted to earn something rather than nothing on what's left in the current account.

artyboy

WSB said:

artyboy said:

Why not suggest to him that he opens a savings account that he can put any spare per month into? Much more choice available rather that trying to make a current account be something that it really isn't...

Going to do that as well. Just wanted to earn something rather than nothing on what's left in the current account.

Thats a good budgeting motivator in itself, keep only about enough in the current account for bills and sweep the rest to savings. My own main current account has been run at close to a zero balance for the last 30 years because I know what's coming in and going out...

mattojgb

App only disruptor/challenger banks seem popular with Gen Z. Monzo and Starling both have current accounts which pay interest. My son has Starling.

wmb194

Edit: Chase removed interest on its current account.

Look at Chase. 1% interest on its current account and 1% cashback on most debit card spending and then a 3.85% savings account. All very easy to move money between the current account and savings account in the app. Chase isn't offering overdrafts yet but you say this isn't an issue.

You can do better with the savings account but if you're looking for low effort this could be an idea.

I wouldn't switch, I'd keep the Santander account and open another. For resiliency it's good to have at least two current accounts with separate banks.

https://www.chase.co.uk/gb/en/

wiseonesomeofthetime

wmb194 said:

Look at Chase. 1% interest on its current account and 1% cashback on most debit card spending and then a 3.85% savings account. All very easy to move money between the current account and savings account in the app. Chase isn't offering overdrafts yet but you say this isn't an issue.

You can do better with the savings account but if you're looking for low effort this could be an idea.

I wouldn't switch, I'd keep the Santander account and open another. For resiliency it's good to have at least two current accounts with separate banks.

https://www.chase.co.uk/gb/en/

Chase no longer pay interest on their current accounts.

RAS

Agree about resiliency. If you lose a card, have it stopped or the bank has a crisis, a second card is a life saver.

I had the chip fall out of a card and was able to extract cash from another account using another card which purposely isn't set up as contactless.

Middle_of_the_Road

WSB said:

Hi,

My 23 year old son has just started his grad job and will be taking home around £2K per month.
He's living with us and has no debt or balances to pay off.

He has a Santander account he setup during his 1 year student industrial placement which earns 0% interest but is looking at switching to an account in which he can earn some interest.

He's not bothered about overdraft facility.  His main intention is to earn interest on his balance and maybe even get a switching bonus.

Grateful for any advice or recommendations.

Many Thanks

Nationwide have a new switching offer. The Flex Direct account pays 5% on the first £1,500 for a year, and 1% thereafter.

https://www.nationwide.co.uk/current-accounts/switch

Albermarle

mattojgb said:

App only disruptor/challenger banks seem popular with Gen Z. Monzo and Starling both have current accounts which pay interest. My son has Starling.

I understand that even many of Gen Z tend to use these banks as a secondary to their main current account, which are still mainly with the traditional providers.
The average balance in a Monzo account is quite low, as many seem reluctant to pay their salary in for example.