Savings account advice

Jenwales_2 · 10 April 2018 at 6:47PM

I have an ISA with HSBC but for the last year or so (and despite a phone call to fix it) it won't let my put more money into it. So I thought I'd open a new account and call it a day. My brother has opened a regular savings account and I was thinking of doing that. I can't always put a regular amount in as I'm saving with my partner in his account. I'm just looking for an account I can put in or take out when I please with no penalties.

Don't really have much time to sort things out at the moment and my finances may be uncertain as im hoping to buy a house this year.

ValiantSon · 10 April 2018 at 7:00PM

It isn't entirely clear what you actually want from the account. If you are looking at putting some money away on a semi-regular basis, and it is unlikely to ever be more than c.£250 per month, then a regular savings account is a reasonable way to go. If you have an HSBC Advance current account then you can access their 5% regular saver, but otherwise have a look at the available regular savers elsewhere:

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts

One note of caution, however, regarding your existing arrangements. You say that you are saving money in your partner's account. This is very high risk as the moment you deposit that money in his account it ceases to be yours and you have no claim on it. Should something go wrong with your relationship, or should he die, you would not have access to that money. I really would advise you to stop doing this straight away. Changing the account to a joint account is a simple solution, but don't keep paying money in to an account that you are not named on.

Jenwales_2 · 13 April 2018 at 2:33PM

ValiantSon wrote: »

It isn't entirely clear what you actually want from the account. If you are looking at putting some money away on a semi-regular basis, and it is unlikely to ever be more than c.£250 per month, then a regular savings account is a reasonable way to go. If you have an HSBC Advance current account then you can access their 5% regular saver, but otherwise have a look at the available regular savers elsewhere:

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts

One note of caution, however, regarding your existing arrangements. You say that you are saving money in your partner's account. This is very high risk as the moment you deposit that money in his account it ceases to be yours and you have no claim on it. Should something go wrong with your relationship, or should he die, you would not have access to that money. I really would advise you to stop doing this straight away. Changing the account to a joint account is a simple solution, but don't keep paying money in to an account that you are not named on.

Thanks for your advice, it's a bit misguided. We've been together for 13 years and are saving in a help to buy isa to buy a house of our own, so this is the best option for us to save for our deposit. It's not high risk, when we buy the house the money will be spent. Under common law I have rights etc since we have lived together for about 4-5 years now, I'm not concerned I have no need to be. But thanks for your concern. We were told not to open a joint account just for paying bills!!!! Banks are not always helpful

Westie983 · 13 April 2018 at 3:16PM

Jenwales wrote: »

I have an ISA with HSBC but for the last year or so (and despite a phone call to fix it) it won't let my put more money into it. So I thought I'd open a new account and call it a day. My brother has opened a regular savings account and I was thinking of doing that. I can't always put a regular amount in as I'm saving with my partner in his account. I'm just looking for an account I can put in or take out when I please with no penalties.

Don't really have much time to sort things out at the moment and my finances may be uncertain as im hoping to buy a house this year.

Hi,

A few issues with your projected plan, a HSBC regular saver requires you to fund it each month with £25 - £250 a month and there is no withdrawals, although you can close it at anytime and get the basic interest of 0.50% (or current savings rate) you mention that you are looking to buy a house this year have you considered a help to buy ISA which doesn't require you to fund each month but what you do fund will be increased each year by the government bonus.

https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

You mention that you have fixed your ISA this could be why you cant fund it with any more money as its now a closed product till it matures, but this doesn't stop you opening a funding a new ISA for this tax year.

As others have said be careful about putting money into your partners account as it becomes his money as soon as you do and if anything (I hope not but being realistic) then you have no claim to the money.

Good luck with your deposit savings

Westie983

eskbanker · 13 April 2018 at 3:34PM

Westie983 wrote: »

You mention that you have fixed your ISA this could be why you cant fund it with any more money as its now a closed product till it matures, but this doesn't stop you opening a funding a new ISA for this tax year.

I could be wrong but suspect that OP's reference to "a phone call to fix it" meant a phone call to try to correct a problem with it (not being able to pay in), rather than a phone call to convert from a variable rate product to a fixed rate one!

YorkshireBoy · 13 April 2018 at 3:36PM

Westie983 wrote: »

You mention that you have fixed your ISA this could be why you cant fund it with any more money as its now a closed product till it matures

I read the post differently. There was a problem (couldn't fund it during the last tax year) which required a "fix".

OP tried (unsuccessfully) to "fix" the problem by ringing them.

I think this may be something as simple as a re-activation being required. If you don't fund an ISA for a full tax year HMRC rules dictate you must re-activate it. Maybe the OP didn't fund the account during the 2016/17 tax year?

ValiantSon · 13 April 2018 at 4:17PM

Jenwales wrote: »

Thanks for your advice, it's a bit misguided. We've been together for 13 years and are saving in a help to buy isa to buy a house of our own, so this is the best option for us to save for our deposit. It's not high risk, when we buy the house the money will be spent. Under common law I have rights etc since we have lived together for about 4-5 years now, I'm not concerned I have no need to be. But thanks for your concern. We were told not to open a joint account just for paying bills!!!! Banks are not always helpful

If your partner dies and he has not left you this money in his will then you have no rights to it. Whoever has told you otherwise is the one who is misguided. Even if you are named in his will it will likely take six to twelve months before you can access the account because of the time taken for probate to be granted. Without a will the law ignores you; there is no such thing as common law marriage in England and Wales.

There are also no rights in the event of your relationship breaking down.

sleepymans · 13 April 2018 at 4:25PM

To the OP: what are these common law rights to which you refer? I!!!8217;ve never heard of them. Others might also find it useful information.
Thanks

Westie983 · 13 April 2018 at 5:10PM

YorkshireBoy wrote: »

I read the post differently. There was a problem (couldn't fund it during the last tax year) which required a "fix".

OP tried (unsuccessfully) to "fix" the problem by ringing them.

I think this may be something as simple as a re-activation being required. If you don't fund an ISA for a full tax year HMRC rules dictate you must re-activate it. Maybe the OP didn't fund the account during the 2016/17 tax year?

I can see the way you read it and tbh sounds more plausible, as it could well be a re designation/dormant issue instead.

Westie983

Savings account advice

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free