Help me out here...! Halifax Customer looking to move

Airplanepics

Hi everyone,

Following on from this thread: http://forums.moneysavingexpert.com/showthread.html?t=747013 I have decided to try and change my bank accounts to the best available ones that are suitable for my needs.

I currently have roughly £1200 paid into my bank from my main job per month. I've read that Halifax give a pretty poor interest rate compared to other banks/building societies.

Can anyone recommend the best Bank account for me? I'm nearly 20, have a full time job and mainly use the account for online transactions and withdrawals from cash points. I'd like something with a good interest rate, and a debt card. Although not essential, an overdraft that is 0%. In fact, I'm not even bothered if I don't have a overdraft.

I'd also like an account where I could get some form of Cashback, whether it be through the likes of Quidco or from the company themselves.

How easy is it now days to set up a new bank account regarding my wages etc? Is it done automatically or would I have to contact each party directly and tell them I'd like my wages put into a new account.

I'd also like a new savings account, one where I can deposit money, and not be able to withdraw it without giving at least a months notice. This may help me save my money. A high interest rate is a must!

I also have a Credit Card with Halifax, which currently has around £2200 on, I'm trying to cut this down over the next couple of months - my interest free period is coming to an end, and I really don't want debt on my shoulders. Should I keep the balance on this card for now, and worry about it when the interest free period runs out?

At the moment, I pay £250 a month into a Premium bond account to pay off a loan from Grandparents (nice of them I know!) They want me to keep this in there, so this will be kept going until I pay off the amount....only another 6k to go! Luckily, it's interest free!

I've been looking into getting an ISA, could someone advise me which one maybe the best for someone in my situation?

I (did) have shares in Northern Rock...not sure what's happening with regards to compensation but what shall I do with any money that I may receive back, invest it into another company?

I look forward into hearing any responses from you intelligent people!


Best Regards,



Simon. :j

Toastie

If you've got debt though pay it off pretty much as much as you can. Then consider a savings account.

ISA wise Icesave is pretty much the best for a whole year at 6.1% best isa calculator: http://www.moneysavingexpert.com/savings/best-cash-isa#calculator

However there are higher and you need £1000 to start it but you will have to transfer in a year or 6months also Icesave have good reviews and i've not had a problem yet.

My incoming money i have in a Barclays account I Direct debit some in to Icesave and keep the rest for spending money for that month.

theApprentice_2

Hi,

Why not stick with Halifax. Simply get them to open up a High Interest Current account (6.17%) and close your current one. They also have a regular saver account (7%) in which you can pay in £200 a month but are not allowed to withdraw it until the end of 12 months. As for ISA'a I'd suggest go with Toastie's advice. It might be worth your while checking with Halifax if the accounts mentioned above are still available what with the Bank rate cuts!

johnmoney05

I like Halifax. With their High Interest and Money back accounts at the same time. I can't see you can find any better from other banks.

Savings_Dave

1. Your priority is to clear as much of that Halifax Credit Card debt before the interest kicks in - otherwise your be losing money every month
2. You should be able to transfer / convert your 'Halifax Current Account' into a 'Halifax High Interest Current Account' at your local branch - I've been with Halifax for 10 years and converted mine to the high interest one a few years ago. I've since been earning about £8-£9 interest a month. All my wage earnings are paid into it and its my main current account. If the balance is due to go over £2500 - I transfer money out to fund other high interest current accounts / savings. Try to avoid overdrafts.
3. Build some cash up in your High Interest Current Account and then open a Cash ISA with the deposit (one has already been suggested). Make sure that is fixed as interest rates are steadily heading downwards.
4. After you've paid your Premium Bonds contribution any left over cash could go into your ISA (max of £3600 a year from April) or a high interest variable rate savings account or if you know your monthly income / expenses pour it into a monthly regular saver.
5. If you do get any compensation for your Northern Rock shares - why not use it to pay off that Halifax Credit Card?
6. If you want to keep track of your income / expenses and moving of money, then perhaps get Microsoft Money or similar finance software - this how helped me enourmously over the years...its not expensive either
7. If shopping do it online and earn some cashback via Quidco

:beer:

Airplanepics

Thank you for all of your help!

Once I get paid next month, I'll go to Halifax and get them to transfer the Current account over to the High Interest One.

If I do get compensation from the Northern Rock shares (I only have about £200 worth!) I'll certainly put that towards paying the Credit Card off. I really want to get that out of the way before it's 0%. I don't really want to go through all the hassle of balance transfers again if I can help it.

Are their any free versions of programs that'll keep track of your expenditures?


Simon.

Airplanepics

Just out of interest, does anyone reccomend the "Halifax Ultimate Reward Account" where you pay a £10 a month subscription?

debbie42

I decided it wasn't worth it to me for the benefits. I'd guess it would vary according to whether you would value the benefits or not.

Aegis

Airplanepics wrote: »

Just out of interest, does anyone reccomend the "Halifax Ultimate Reward Account" where you pay a £10 a month subscription?

Not unless you want enough of the stuff they give you to warrant paying out £120 per year. For most people, I'd suggest that it's not worth the money.