Setting up wedding savings accounts

beckstrous

(Mods, if I have put this in the wrong forum please move - I wasn't too sure!)

My fianc! and I get married this September and for the past year we have had a regular internet savings account at Lloyds TSB which had 8% interest for the first year, paid annually. We've received that interest, and now we want to move the money and some other savings for the wedding (around £5k at the moment) elsewhere. I am really not sure whether to look for a savings account or a current account for this money. We will need regular (online) access to it and no limits on what we can withdraw and we also want interest to be paid monthly. My OH's folks have very kindly offered us £8k to help pay for the wedding and so for a while, there will be a fair amount of money in the account and it makes sense for it to be somewhere where it can earn interest.

I have read Martin's articles about savings and current accounts but I am a bit confused about what to go for. We were also thinking about switching both of our current accounts to First Direct because this would give us £100 each to sign up and I don't know how else we could so easily make £200 just like that. We could put that to the wedding too.

We were also wondering about the Alliance & Leicester current account that offers 8.5% interest at the moment, but I think this is only if your balance remains under £2500. I've become a but confused and am wondering about moving our normal joint account here - the balance does not normally go over £2500.

Would it be sensible to maybe have both a wedding savings account, where the unused money can be kept, and then a wedding joint account (which is really just THE joint account) for transferring stuff for day-to-day use?

Any advice and recommendations would be really appreciated as our savings are now basically earning nothing so the sooner we sort this the better! I have become a bit confused by all the options, which is why I am asking for advice...

MrsTinks

I'm going to move this to the current accounts and savings board as I think you might get a better response over there

Good luck tho!

cloud_dog

I think this might be a bit 50/50.

If you have savings and haven't used your ISA allowance then I suggest you put it in to a top ISA account, using both your allowances. May also want to consider putting more there in April.

You could also open the A&L account with £2.5k and use this for near term expenses (if you incur any) and withdraw your ISA cash as late as possible. Obviously with the online ISA's they only take a few days to get in to your current account for paying bills.

cloud_dog

beckstrous

Thanks for the reply. There is such a lot to consider I find finances v.confusing!