Where should I put my wages?

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Stamford_2
Stamford_2 Posts: 12 Forumite
in Savings & investments
Hello.
I'm going to be starting full-time work a week on Monday and am wondering which bank account would be the best to put my wages into.
You see, I'm currently a student and my part-time wages go into my (£1300 overdrawn) student account. I want to be able to put my wages into one account, pay a bit of my overdraft off each month, put some in my Abbey Cash ISA, and transfer some to the joint account I'm going to have to set up with my girlfriend for our rent to go out of.
Do I need to worry too much about an account's interest if I'm saving in an ISA?
Stamford.

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  • grumbler
    grumbler Posts: 58,629 Forumite
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    Stamford wrote:
    Do I need to worry too much about an account's interest if I'm saving in an ISA?
    You are right. You don't need to worry about interest rate. Any current account will suit you. It is difficult to give an advice in such situation. :confused:
    I like Nationwide. Good online banking and no comission on foreign transactions. Good instant access e-savings account with 5%...
  • HappyHelen_2
    HappyHelen_2 Posts: 18 Forumite
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    I'm in same position as you and I'm gonna open an account with Halifax coz they'll give me cashback on debit card spending and they're open all day on a Saturday.
  • Pal
    Pal Posts: 2,076 Forumite
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    Do you pay charges on the overdraft? If not, is this going to change once you start work and are not a student?

    If you are going to pay charges, you are better off paying your entire wage into the bank account to reduce your overdraft immediately. Then forget the ISA or any other savings accounts until you have paid off your overdraft. Then you can start saving.
  • lipidicman
    lipidicman Posts: 2,598 Forumite
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    I do this

    Two accounts with the same bank
    One takes my salary and pays interest at 4% ish.
    The other is my now graduate overdrawn account. You must pay in regularly to keep the overdraft interest free. So I transfer £X into it, and then pay this out to my reg savers. Bank Happy.

    This way - you have a 0% overdraft racked up (effectively the money is in my savings account), and you get interest on your salary! Best of Both!
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