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    • scaredofdebt
    • By scaredofdebt 16th Sep 19, 8:28 AM
    • 1,387Posts
    • 687Thanks
    scaredofdebt
    Savings "Pots"
    • #1
    • 16th Sep 19, 8:28 AM
    Savings "Pots" 16th Sep 19 at 8:28 AM
    I'm putting this in budgeting as although it is about savings, it is really about budgeting.


    Is there a savings account or a mobile phone app, that lets you save money into "pots". For example, I want to save towards Christmas (1 pot), put money aside for car maintenance (pot 2) and also for emergency expenses (pot 3) and so on.


    Is there anything with this kind of facility?


    Thanks.


    David


    (Feel free to move this is appropriate.)
    Make 2018 in 2018 Challenge - Total to date 2,108
Page 1
    • jen49
    • By jen49 16th Sep 19, 8:33 AM
    • 137 Posts
    • 643 Thanks
    jen49
    • #2
    • 16th Sep 19, 8:33 AM
    • #2
    • 16th Sep 19, 8:33 AM
    Can you open several savings accounts with your bank and name them? My online banking app allows this although I haven't done named mine or even tried TBH
    • MikeWhite
    • By MikeWhite 16th Sep 19, 8:33 AM
    • 508 Posts
    • 221 Thanks
    MikeWhite
    • #3
    • 16th Sep 19, 8:33 AM
    • #3
    • 16th Sep 19, 8:33 AM
    The Monzo account has a "Savings Pot" feature. It's not a savings account, though.
    • Rich1976
    • By Rich1976 16th Sep 19, 9:40 AM
    • 224 Posts
    • 119 Thanks
    Rich1976
    • #4
    • 16th Sep 19, 9:40 AM
    • #4
    • 16th Sep 19, 9:40 AM
    We have 3 separate savings at another bank so completely separate to our current account. They allow you to rename them so have done Car, Holiday and Home. I like pots of money being separated as you can see how much you have saved for each purpose.

    Or you can just keep a spreadsheet which would be more manual
    • colsten
    • By colsten 16th Sep 19, 10:05 AM
    • 11,061 Posts
    • 10,355 Thanks
    colsten
    • #5
    • 16th Sep 19, 10:05 AM
    • #5
    • 16th Sep 19, 10:05 AM
    B (from Yorkshire Bank) offers pots: https://www.youandb.co.uk/banking-app/savings-pot/#/

    Unfortunately, the interest rate is terrible (1% AER currently). You can get substantially better interest rates - up to 5% AER - if you go after the best paying accounts. You could manage your savings as virtual pots, by allocating the total savings to individual sub-categories (which is the approach B actually employs). A simple spreadsheet, or just pen and paper, will help with managing the virtual pots.

    The other option you have is that you keep your money in physically separate accounts. E.g. up to 2,500 in a FlexDirect, up to 1,500 in a TSB Plus etc.

    How much do you want to save in each category? How many savers are there, are you after sole accounts or could joint accounts play a role? How long can you put your money away for?
    • lindens
    • By lindens 16th Sep 19, 10:14 AM
    • 2,508 Posts
    • 7,258 Thanks
    lindens
    • #6
    • 16th Sep 19, 10:14 AM
    • #6
    • 16th Sep 19, 10:14 AM
    I have a nationwide account that has an app and i can open multiple pots and name them what i want, and easily transfer money between them either as one off or regularly.
    I also have a monzo current account with a debit m/c. It is app only and is really great, esp if friends/family members also have one. you can add notes to purchases, group purchases like a spending diary. Have multiple pots, set limits/goals etc. Also useful for going abroad as no commission fees.
    You're not your * could have not of * Debt not dept *
    • fanheater
    • By fanheater 16th Sep 19, 12:33 PM
    • 97 Posts
    • 31 Thanks
    fanheater
    • #7
    • 16th Sep 19, 12:33 PM
    • #7
    • 16th Sep 19, 12:33 PM
    Starling does this. I have half a dozen savings pots with them. The rate is 0.5% so better than Monzo but worse than B.
    • BooJewels
    • By BooJewels 16th Sep 19, 1:01 PM
    • 424 Posts
    • 281 Thanks
    BooJewels
    • #8
    • 16th Sep 19, 1:01 PM
    • #8
    • 16th Sep 19, 1:01 PM
    I have a Reward current account with Halifax and this allows 5 associated savings accounts and you can apply for these on-line and they're live within minutes - and you can rename them whatever you want.

    I use these as pots to allocate money to and they're all visible in your on-line banking and you can easily move money between them instantly. If I need to spend something out of one of the savings pots, I just transfer it into the current account and use the debit card to pay for that item - like I did last week with the car road tax.

    Although they don't earn much, I like that I can budget and allocate spending to particular pots and it keeps it out of the current account- where I might be tempted to dip into it and it's slightly more vulnerable than being buried a layer deeper in a saving account with no card access.
    • colsten
    • By colsten 16th Sep 19, 1:48 PM
    • 11,061 Posts
    • 10,355 Thanks
    colsten
    • #9
    • 16th Sep 19, 1:48 PM
    • #9
    • 16th Sep 19, 1:48 PM

    Although they don't earn much, I like that I can budget and allocate spending to particular pots and it keeps it out of the current account- where I might be tempted to dip into it and it's slightly more vulnerable than being buried a layer deeper in a saving account with no card access.
    Originally posted by BooJewels
    They don't just earn not much (at 0.2% AER), they are actually losing you money as inflation is considerably more than 0.2%. You can easily get 6+ times as much interest in instant access accounts which, by definition, keep your money separate from your current account. Not to talk about those non-Halifax current accounts that would pay you up to 25 times as much interest as your Halifax pots!
    • BooJewels
    • By BooJewels 16th Sep 19, 4:41 PM
    • 424 Posts
    • 281 Thanks
    BooJewels
    Not to talk about those non-Halifax current accounts that would pay you up to 25 times as much interest as your Halifax pots!
    Originally posted by colsten
    The current arrangement suits me - personally - for my particular domestic organisational requirements.

    At the moment I couldn't meet the opening requirements or operating criteria for such accounts.
    • colsten
    • By colsten 16th Sep 19, 9:23 PM
    • 11,061 Posts
    • 10,355 Thanks
    colsten
    The current arrangement suits me - personally - for my particular domestic organisational requirements.
    Originally posted by BooJewels
    They might suit you but they are anything but MSE.

    At the moment I couldn't meet the opening requirements or operating criteria for such accounts.
    Originally posted by BooJewels
    Standard instant access accounts neither have opening requirements beyond a 1 initial deposit, or operating criteria. Moreover, meeting the operating criteria for the likes of the FlexPlus or TSB Plus are very easily met by anyone who actually has even small savings. Shuttling money between accounts by standing order is very simple to set up, or if you prefer doing it manually, it's an easy, once a month, and not very time-consuming job to do with Faster Payment.
    • BooJewels
    • By BooJewels 16th Sep 19, 9:55 PM
    • 424 Posts
    • 281 Thanks
    BooJewels
    They might suit you but they are anything but MSE.
    Originally posted by colsten
    That wasn't what the OP asked for - they asked for accounts with 'pots' for budgeting.

    Standard instant access accounts neither have opening requirements...
    They perhaps don't feel as though they do, if you can easily meet those requirements. I can't - so can't avail myself of them. But my banking arrangements aren't what the thread is about and the subject is now closed.
    • colsten
    • By colsten 16th Sep 19, 10:58 PM
    • 11,061 Posts
    • 10,355 Thanks
    colsten
    They perhaps don't feel as though they do, if you can easily meet those requirements. I can't - so can't avail myself of them. But my banking arrangements aren't what the thread is about and the subject is now closed.
    Originally posted by BooJewels
    Standard instant access accounts don't have opening requirements above and beyond those you would have had to meet for your Halifax savings accounts. Instant access savings accounts are, in fact, the easiest-to-open accounts I can think of, and I have applied for several dozen accounts in my time.
    • EarthBoy
    • By EarthBoy 17th Sep 19, 6:42 AM
    • 2,199 Posts
    • 1,546 Thanks
    EarthBoy
    Standard instant access accounts neither have opening requirements beyond a 1 initial deposit, or operating criteria. Moreover, meeting the operating criteria for the likes of the FlexPlus or TSB Plus are very easily met by anyone who actually has even small savings.
    Originally posted by colsten
    The accounts are simple to set up and operate, but not everybody can meet the requirements to earn the interest. FlexPlus needs 1000 paying in every month, and TSB Classic Plus needs 500 paying in every month. Yes, these amounts can be paid in and transferred straight out again and you can do it automatically by standing orders, but you still need the money in another account in order to transfer it in.

    If you haven't got any savings already and want to put money aside in "pots" for particular circumstances, the Halifax savings accounts serve a useful purpose, even if they will earn you next to nothing in interest.
    • LobsterMemory
    • By LobsterMemory 17th Sep 19, 7:53 AM
    • 246 Posts
    • 184 Thanks
    LobsterMemory
    While they do, the fact is, moving away from the specifics, that the convenience of using these app-based products is costing more than you could be making by using a straightforward 1-to-open easy-access account like Marcus and a pen-and-paper

    Not sure I've worded that right - what I mean is you're getting up to 0.5% on the apps and could be getting 1.45% so it's costing more than 0.95%
    • colsten
    • By colsten 17th Sep 19, 8:01 AM
    • 11,061 Posts
    • 10,355 Thanks
    colsten
    The accounts are simple to set up and operate, but not everybody can meet the requirements to earn the interest. FlexPlus needs 1000 paying in every month, and TSB Classic Plus needs 500 paying in every month. Yes, these amounts can be paid in and transferred straight out again and you can do it automatically by standing orders, but you still need the money in another account in order to transfer it in.
    Originally posted by EarthBoy
    Too many people seem to wrongly assume that the monthly deposits need to be made in a single sum. Whilst it would obviously tedious to e.g. meet the 1,000 monthly deposits by 1,000 1 deposits, it is technically possible. More realistic is to shuttle enough 100, 200, 300 etc amounts to and fro.


    If you haven't got any savings already and want to put money aside in "pots" for particular circumstances, the Halifax savings accounts serve a useful purpose, even if they will earn you next to nothing in interest.
    Originally posted by EarthBoy
    I will always maintain that starting out with a 0.2% AER account when you just as easily could start out with a 1.45% AER account is anything but MSE.
    • EarthBoy
    • By EarthBoy 17th Sep 19, 11:36 AM
    • 2,199 Posts
    • 1,546 Thanks
    EarthBoy
    Whilst it would obviously tedious to e.g. meet the 1,000 monthly deposits by 1,000 1 deposits, it is technically possible. More realistic is to shuttle enough 100, 200, 300 etc amounts to and fro.
    Originally posted by colsten
    Yes, but if you only have, for example, 5 to start with, you'd spend all day moving it in and out for very little benefit. As you say, that's not very realistic.

    I will always maintain that starting out with a 0.2% AER account when you just as easily could start out with a 1.45% AER account is anything but MSE.
    Originally posted by colsten
    True, but you have to balance the advantage of the interest rate against the work involved to operate the account for the total sum involved. 0.2% interest on 5 is 1p per year, whilst 5% interest on 5 is still only 25p per year. For most people, it wouldn't be worth the bother.

    My point is that starting with the 0.2% accounts is useful when you only have small sums to save, but I would agree that you'd need to start considering better alternatives when your money grows sufficiently to make earning extra interest worth the work needed to operate higher paying accounts.
    • Brodiebobs
    • By Brodiebobs 17th Sep 19, 11:49 AM
    • 863 Posts
    • 3,453 Thanks
    Brodiebobs
    I use Monzo for general budget pots, which I tend to spend that month/couple of months and not bothered about interest. Like food, entertainment, clothes etc.

    Then I set up a regular saver linked to main bank account which has a better rate (5%) which matures in Nov every year which is loosely marked for Xmas. Works for us
    Addicted to MSE.
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