Seeking alternative account

ultraviolent

Hi everyone,

I'm currently using a nationwide flex account (Interest rates between 0.10% and 4%, depending on how much is paid in that month). However, I keep the majority of my money in the attached e-savings account (5.55%).

I'm looking for an account which will enable me to earn more interest than this (About 9/10th of my money is in the e-savings, but the rest is only earning a pittance in interest... which brings down the net interest I earn on my money).

If I am to swap accounts I would require a debit card so that I can withdraw money from an ATM or make payments online. I currently use internet banking a lot, so this would be near essential for the new account.

I'm a student so I don't have a regular income, so a regular savings account is out of the question. However, I am consistently in credit (£1k~£3k) so do not require an overdraft facility. I've had a look at a few of the articles on this website but I'm still unclear about which account would be best for me.

It would be great if someone would be able to recommend an account. I hope I posted this in the correct place!

Many thanks,

martinman3

The Nationwide e-savings account is not that bad for what it is, an instant access (using transfer to Flexaccount) account. You could open a cash ISA if you wished, but it is not designed for putting money in/taking it out/putting again, note that the rates for Nationwide ISAs are not very good.

My question is should you pay tax anyway ? Have you filled it a Self Assessment form ?
If your income is below the personal allowance you can claim back last 6 years of tax on interest, and keep doing that until you earn more or register to receive interest tax free using R85 on e-savings and Flexaccount.

http://www.hmrc.gov.uk/students/fagr40.shtml
http://www.hmrc.gov.uk/students/interest_on_savings_1_3.htm

ultraviolent

Sorry, I think I must have mislead you when I mentioned my "net" interest. I meant that the result of having 1/10th of my money in a low interest account (The flex account) brings down the total interest I earn, even though I earn gross interest rates on both accounts. Thanks for the advice though!

bristolleedsfan

ultraviolent wrote: »

the total interest I earn quote]


"Total" Interest u earn will be even less from today.

What goes down and never goes up? :think:

http://www.nationwide.co.uk/current_account/default.htm

Nationwide Savings Rate changes at a glance. _pale_

http://www.nationwide.co.uk/mediacentre/pdf/bkg-and-sav-rates1March2008.pdf

torbrex

You dont say how much your income is but if it is close to £500/month you might consider the Alliance & Leicester premier current account which pays 8.5% on balances up to £2500.
If you dont have an income close to £500 you can still have the account and get the interest but it involves taking the money out and putting it back in again to achieve the target and get the interest. These accounts can be operated via the post office.

Just realised that this account is for those over 21, and I noticed that you have said that you are a student.

ultraviolent

I'm 19 so wouldn't qualify for that account. Thanks for posting it though, I hope someone else can make use of it.

I don't have a job at university so I wouldn't be able to hold a regular deposit account (Unless paying in my student loan and earnings from a summer job counts towards this).

Since a lot of the money I have at any one point is from the student loans company, on which I'm being charged about 4.5% interest, I simply need the best instant access savings acccount that means I can maximise this loan. (If I could find an account that pays 6%, I'd make 1.5% profit for the duration that I can keep the full loan in my bank account - thereafter I'm making a loss).

bristolleedsfan

ultraviolent wrote: »

(If I could find an account that pays 6%, I'd make 1.5% profit for the duration that I can keep the full loan in my bank account - thereafter I'm making a loss).

Halifax PLC ( Despite having to buy bubbly for its shareholder meetings :rotfl: ) pays 6% credit interest on its current account. ( up to 2500.00)

http://www.halifax.co.uk/bankaccounts/highinterestcurrentaccount.asp

ultraviolent

I just found this on the Halifax website.

Who's it for?
Anyone who can pay in at least £1,000 or more every month can apply.

Doesn't look like I'd be able to get this account either!

bristolleedsfan

ultraviolent wrote: »

I just found this on the Halifax website.


Doesn't look like I'd be able to get this account either!

Sorry i thought u was putting 1000.00 a month in Nationwide Flexi account per month ( by recycling money) and was just unhappy with what was 4% ( now 3.75%) Gross rate for the time funds were in flexi account

One answer is for you to keep everything in Nationwides E-Saver and move funds across to the flexi account as they are due to come out, i.e online banking shows when a cheque is being processed and therefore gives opportunity to move funds across.

LittleVoice

ultraviolent wrote: »

I just found this on the Halifax website.



Doesn't look like I'd be able to get this account either!

The £1K doesn't have to be in one amount - it is the total in the month which counts. So, for example, you could pay in £250, withdraw it and then pay it in again. Repeat until you had paid in £1K in total.

Milarky

LittleVoice wrote: »

The £1K doesn't have to be in one amount - it is the total in the month which counts. So, for example, you could pay in £250, withdraw it and then pay it in again. Repeat until you had paid in £1K in total.

Although this works perfectly well to reach the required funding each month, this particular account requires a certain discipline (cf the Nationwide account, for instance) If you don't fund it to at least £1000 in two successive months then not only do you lose the good rate for those months (as you would elsewhere) but you then have to 're-fund' to at least £1K for the next three months before you can get the rate back again (and during those three months you'd need to keep the money somewhere where it could earn a fair rate.)

But I agree with BLF too - as this appears to be a 'fixed' higher rate, it just good better.....