Feeder accounts - any suggestions?

aquarian3

Hi,

I've heard Martin talk about having little accounts set up for things like Xmas, holidays, emergencies, food etc, we are not in a position to save lots of money but it makes sense to start saving now for Xmas and to try for a holiday. Even 10 quid a month is better than nothing!

My question really is - does anyone know the best type of accounts to open for these types of things?

At the moment we have a joint Flexaccount with the Nationwide where our meagre wages get paid into and all our direct debits go out from.

My husbands got a basic account with the Nationwide where our tax creds get paid into, I also use this to pay bills online if our joint account is short. Our food money comes from these accounts when we need shopping.

We have a joint debit account with the Natwest that has about 100 quid in and is currently being used for buying things online (presents for son's bd in April) and in case we get caught short in a shop.

I have a basic Barclays account that was moved from the Woolwich. The Barclays one just has my son's inheritance money sitting in (not much - about 600 quid).

Should I open up more accounts for 'holiday', 'food', 'emergencies', 'Xmas/bd's' etc or use the accounts we do have a little better?

Thanks in advance for any advice,

Lisa
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munk

I know from experience that Sainsburys Bank allow you to set up as many different savings accounts per person as you want (well within reason I guess) which is useful for the kind of thing you're talking about doing - you could have one for household bills, one for xmas, one for holidays, one for food, etc etc. They're also ideal for what you're wanting to do because they don't limit you to one 'linked account' when you want to transfer money - so you can transfer money via BACS to wherever you want, not just one single 'linked' current account (note though they don't provide direct debit facilities though on the savings accounts which is one negative).

They don't offer the best rate right now but afaik they do have a 'rate guarantee' that says they'll keep their interest rates above the bank of england base rate until 2009 or something(?), so you should get a competitive rate even if it's not at the top of the tables. Check their site for more info.

aquarian3

:beer:
Many thanks, I'll check out the Sainsbury's accounts, it does sound ideal.

Kindest Regards

Lisa
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