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  • FIRST POST
    • Red-Squirrel
    • By Red-Squirrel 5th Jan 19, 11:10 AM
    • 4,047Posts
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    Red-Squirrel
    New saver advice!
    • #1
    • 5th Jan 19, 11:10 AM
    New saver advice! 5th Jan 19 at 11:10 AM
    So for the first time since I've been a homeowner I'm in a position to save again! I'm hoping the lovely experts on this board can give me some suggestions as to the best easy access places to keep a small but hopefully growing pot of money. I have around £500 a month that I can save from my salary.

    I currently have the following pots/accounts:

    £400 in a Natwest current account earning no interest as far as I know (this is a 'spare' current account, no DDs or other use apart from me paying in and out of it.

    £550 in a co-op savings account earning 0.59%

    £100 in Starling

    £760 in Monzo

    My main current account is with the Co-op but I have just opened a HSBC one for the bonus and the switch should go through in the next week or so. I will then open the regular 5% savings account and put the full £250 in there every month.


    I'm stuck as what to do with the little bit of money I already have and the other £250 I want to save each month. I could do with easy access as it will be a mixture of emergency fund and pots for things like vet bills, holidays, home improvements etc. One pot is for travel plans that are more than a year away so I could conceivably put some in a longer term product.


    Any ideas? Thanks in advance!
    Last edited by Red-Squirrel; 05-01-2019 at 11:14 AM.
Page 1
    • EachPenny
    • By EachPenny 5th Jan 19, 11:30 AM
    • 9,719 Posts
    • 27,113 Thanks
    EachPenny
    • #2
    • 5th Jan 19, 11:30 AM
    • #2
    • 5th Jan 19, 11:30 AM
    Any ideas? Thanks in advance!
    Originally posted by Red-Squirrel
    Open a TSB Classic Plus current account? That will earn you 5% on up to £1500 so long as you meet the minimum monthly pay-in requirement and go paperless. The account can be opened and managed online so no need to go to a branch. That might do for the 'easy access' part of your savings. The only down-side is possibly missing out on a future switch bonus if TSB do one again in the future. (but that will depend on the T&C's and whether the offer is only available to new customers, or those who haven't switched before)

    If you don't want another current account then do you have a Virgin Money branch you can get to easily? Their regular saver pays 3% but allows withdrawals so gives a reasonable level of easy access.
    "In the future, everyone will be rich for 15 minutes"
    • Red-Squirrel
    • By Red-Squirrel 5th Jan 19, 11:48 AM
    • 4,047 Posts
    • 10,861 Thanks
    Red-Squirrel
    • #3
    • 5th Jan 19, 11:48 AM
    • #3
    • 5th Jan 19, 11:48 AM
    Open a TSB Classic Plus current account? That will earn you 5% on up to £1500 so long as you meet the minimum monthly pay-in requirement and go paperless. The account can be opened and managed online so no need to go to a branch. That might do for the 'easy access' part of your savings. The only down-side is possibly missing out on a future switch bonus if TSB do one again in the future. (but that will depend on the T&C's and whether the offer is only available to new customers, or those who haven't switched before)

    If you don't want another current account then do you have a Virgin Money branch you can get to easily? Their regular saver pays 3% but allows withdrawals so gives a reasonable level of easy access.
    Originally posted by EachPenny
    I don't think I want to go down the road of having to move my salary from one account to another. I don't want to leave myself vulnerable to accidentally leaving direct debits unpaid or having to do manual transfers on specific dates each month as I'm not always in a position to do it (work travel, long hours etc.)

    I'll have a look at the virgin money account, there's a branch in the city centre, I'd have to pay to get to it either parking or tram fare, but might be worth it. Thanks!
    • EachPenny
    • By EachPenny 5th Jan 19, 12:05 PM
    • 9,719 Posts
    • 27,113 Thanks
    EachPenny
    • #4
    • 5th Jan 19, 12:05 PM
    • #4
    • 5th Jan 19, 12:05 PM
    I don't think I want to go down the road of having to move my salary from one account to another. I don't want to leave myself vulnerable to accidentally leaving direct debits unpaid or having to do manual transfers on specific dates each month as I'm not always in a position to do it (work travel, long hours etc.)
    Originally posted by Red-Squirrel
    No need for any of that. Just set up a standing order to pay £500 from your main current account into the TSB one, with another standing order paying the money from the TSB account back to the main one a couple of days later. So long as you pick a date for the first SO when your main current account will always have at least £500 in it (e.g. a few days after you get paid?) then there is nothing that can really go wrong.

    The Classic Plus has no requirement for DD's to earn interest... which is partly why I thought it might suit someone new to the game.
    I'll have a look at the virgin money account, there's a branch in the city centre, I'd have to pay to get to it either parking or tram fare, but might be worth it. Thanks!
    Originally posted by Red-Squirrel
    You need to go to the branch to open the account and to make withdrawals, but if you plan to open the account when you need to go into the city centre anyway then the cost of that is mitigated. It can also be useful to have some 'hassle' involved in withdrawing savings money as it discourages you from dipping into the savings unless you really need to. Just be aware that Virgin are especially fussy about you having the right ID to open accounts, and for the first one you will definitely need to make an appointment.
    "In the future, everyone will be rich for 15 minutes"
    • LateStarter
    • By LateStarter 5th Jan 19, 12:08 PM
    • 199 Posts
    • 218 Thanks
    LateStarter
    • #5
    • 5th Jan 19, 12:08 PM
    • #5
    • 5th Jan 19, 12:08 PM
    FirstDirect also do a 5% regular saver, but their current account doesn't pay anything.
    • Red-Squirrel
    • By Red-Squirrel 5th Jan 19, 12:16 PM
    • 4,047 Posts
    • 10,861 Thanks
    Red-Squirrel
    • #6
    • 5th Jan 19, 12:16 PM
    • #6
    • 5th Jan 19, 12:16 PM
    No need for any of that. Just set up a standing order to pay £500 from your main current account into the TSB one, with another standing order paying the money from the TSB account back to the main one a couple of days later. So long as you pick a date for the first SO when your main current account will always have at least £500 in it (e.g. a few days after you get paid?) then there is nothing that can really go wrong.

    The Classic Plus has no requirement for DD's to earn interest... which is partly why I thought it might suit someone new to the game.

    You need to go to the branch to open the account and to make withdrawals, but if you plan to open the account when you need to go into the city centre anyway then the cost of that is mitigated. It can also be useful to have some 'hassle' involved in withdrawing savings money as it discourages you from dipping into the savings unless you really need to. Just be aware that Virgin are especially fussy about you having the right ID to open accounts, and for the first one you will definitely need to make an appointment.
    Originally posted by EachPenny

    The bolded definitely simplifies it, thanks!
    • YorkshireBoy
    • By YorkshireBoy 5th Jan 19, 12:29 PM
    • 30,419 Posts
    • 18,319 Thanks
    YorkshireBoy
    • #7
    • 5th Jan 19, 12:29 PM
    • #7
    • 5th Jan 19, 12:29 PM
    The bolded definitely simplifies it, thanks!
    Originally posted by Red-Squirrel
    Just be sure you meet the other 3 key requirements for this account. Nothing is "simple" with finance.
    • Red-Squirrel
    • By Red-Squirrel 5th Jan 19, 12:43 PM
    • 4,047 Posts
    • 10,861 Thanks
    Red-Squirrel
    • #8
    • 5th Jan 19, 12:43 PM
    • #8
    • 5th Jan 19, 12:43 PM
    Just be sure you meet the other 3 key requirements for this account. Nothing is "simple" with finance.
    Originally posted by YorkshireBoy
    Yeah, I might stick with just one 'main' current account after all!
    • EachPenny
    • By EachPenny 5th Jan 19, 5:28 PM
    • 9,719 Posts
    • 27,113 Thanks
    EachPenny
    • #9
    • 5th Jan 19, 5:28 PM
    • #9
    • 5th Jan 19, 5:28 PM
    Yeah, I might stick with just one 'main' current account after all!
    Originally posted by Red-Squirrel
    I don't think YorkshireBoy meant to put you off completely The requirements for the Classic Plus are not onerous, you just need to make sure you understand them and set things up properly. Hence the caution.

    Even 'simple' savings accounts come with T&C's which need to be understood and followed.
    "In the future, everyone will be rich for 15 minutes"
    • Red-Squirrel
    • By Red-Squirrel 6th Jan 19, 8:30 AM
    • 4,047 Posts
    • 10,861 Thanks
    Red-Squirrel
    I don't think YorkshireBoy meant to put you off completely The requirements for the Classic Plus are not onerous, you just need to make sure you understand them and set things up properly. Hence the caution.

    Even 'simple' savings accounts come with T&C's which need to be understood and followed.
    Originally posted by EachPenny
    Youíre right and I can see how itís do-able, iím Just not sure itís the right answer for me!

    I think iím sorted on my £500 a month, iíll put £250 in the HSBC 5% saver and open a virgin 3% saver for the other.

    Any tips on where to put the £1800 ish thatís sitting around earning nothing at the moment? ISAs look rubbish.
    • greenglide
    • By greenglide 6th Jan 19, 10:59 AM
    • 3,233 Posts
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    greenglide
    The TSB Classic Plus account would pay 5% on £1,500 of this which would seem ideal.


    Not sure why you keep ignoring this?
    • jimjames
    • By jimjames 6th Jan 19, 11:08 AM
    • 12,966 Posts
    • 11,804 Thanks
    jimjames
    Youíre right and I can see how itís do-able, iím Just not sure itís the right answer for me!

    I think iím sorted on my £500 a month, iíll put £250 in the HSBC 5% saver and open a virgin 3% saver for the other.

    Any tips on where to put the £1800 ish thatís sitting around earning nothing at the moment? ISAs look rubbish.
    Originally posted by Red-Squirrel
    Alternatively switch your current account to TSB and you'll get 5% on all your money up to £1500
    Remember the saying: if it looks too good to be true it almost certainly is.
    • ian1246
    • By ian1246 6th Jan 19, 11:42 AM
    • 21 Posts
    • 13 Thanks
    ian1246
    Might also be worth switching your Natwest account yo a Natwest rewards account & pay all your bills through there. 2% cashback on council tax, water, electricity/gas, mobile phone, internet & TV packages is nothing to sneeze at :-)
    • Red-Squirrel
    • By Red-Squirrel 6th Jan 19, 12:43 PM
    • 4,047 Posts
    • 10,861 Thanks
    Red-Squirrel
    The TSB Classic Plus account would pay 5% on £1,500 of this which would seem ideal.


    Not sure why you keep ignoring this?
    Originally posted by greenglide
    I'm not ignoring it, I have stated several times that I don't want two 'main' current accounts. I know some people are happy to set up complex transferring systems to meet the requirements but I like to keep my salary and DDs to one main current account.

    I will have a look at the requirements to see if there's a way to make it work for me.
    Last edited by Red-Squirrel; 06-01-2019 at 12:51 PM.
    • Red-Squirrel
    • By Red-Squirrel 6th Jan 19, 12:44 PM
    • 4,047 Posts
    • 10,861 Thanks
    Red-Squirrel
    Might also be worth switching your Natwest account yo a Natwest rewards account & pay all your bills through there. 2% cashback on council tax, water, electricity/gas, mobile phone, internet & TV packages is nothing to sneeze at :-)
    Originally posted by ian1246
    Thanks, maybe one to look at in 12 months when its switching time again.
    • Tammer
    • By Tammer 6th Jan 19, 12:53 PM
    • 325 Posts
    • 215 Thanks
    Tammer
    I know I always say it, but you may wish to google "TSB service issues" before deciding to do business with them....
    • YorkshireBoy
    • By YorkshireBoy 6th Jan 19, 12:54 PM
    • 30,419 Posts
    • 18,319 Thanks
    YorkshireBoy
    I'm not ignoring it, I have stated several times that I don't want two 'main' current accounts. I know some people are happy to set up complex transferring systems to meet the requirements but I like to keep my salary and DDs to one main current account.
    Originally posted by Red-Squirrel
    In your case the TSB account would be used as a savings account. You'd put your £1,500 in there and once a month log in and transfer £506 to your 'main' account. You'd then immediately send £500 back to TSB. You could even automate this, as I and many others do.

    Let's compare using the TSB account with the best traditional savings account at the moment, Marcus at 1.5% AER (or even Tesco at 1.45% AER):

    With both accounts you need to make an application.
    With both accounts you need to set up online banking
    With TSB you need to set up paperless (a couple of ticks in boxes during the application). Marcus is paperless by default.
    With TSB you need to log in at least once per year. With Marcus you ought to log in frequently.

    So, lots of common ground there. But what's the differentiator if you'd to choose one over the other?...yes, one pays around 3 times the interest the other one does.

    Now if you go for Marcus over TSB you're probably on the wrong website.
    • YorkshireBoy
    • By YorkshireBoy 6th Jan 19, 12:57 PM
    • 30,419 Posts
    • 18,319 Thanks
    YorkshireBoy
    I know I always say it, but you may wish to google "TSB service issues" before deciding to do business with them....
    Originally posted by Tammer
    As a main current account you have a point. But as a savings account it wouldn't (and doesn't) bother me.
    • Red-Squirrel
    • By Red-Squirrel 6th Jan 19, 12:57 PM
    • 4,047 Posts
    • 10,861 Thanks
    Red-Squirrel
    I know I always say it, but you may wish to google "TSB service issues" before deciding to do business with them....
    Originally posted by Tammer
    That's a good point, I have heard bad things!

    Looking at the T&Cs, the interest isn't dependent on doing a switch as some are, so I'm wondering if I can meet the requirements by transferring the same £500 out to my spare NatWest account and then back in again 24 hours later? Do banks accept this or are they funny about it?

    That would be an acceptable level of admin for me as it would still leave me with one 'main' current account for salary and bills.

    (I might actually close the NatWest account and use monzo or starling instead for the transfer in order to be a new customer for future switch offers, although I have my mortgage with NatWest, will have to check if that excludes me.)
    Last edited by Red-Squirrel; 06-01-2019 at 1:01 PM.
    • Red-Squirrel
    • By Red-Squirrel 6th Jan 19, 12:59 PM
    • 4,047 Posts
    • 10,861 Thanks
    Red-Squirrel
    In your case the TSB account would be used as a savings account. You'd put your £1,500 in there and once a month log in and transfer £506 to your 'main' account. You'd then immediately send £500 back to TSB. You could even automate this, as I and many others do.

    Let's compare using the TSB account with the best traditional savings account at the moment, Marcus at 1.5% AER (or even Tesco at 1.45% AER):

    With both accounts you need to make an application.
    With both accounts you need to set up online banking
    With TSB you need to set up paperless (a couple of ticks in boxes during the application). Marcus is paperless by default.
    With TSB you need to log in at least once per year. With Marcus you ought to log in frequently.

    So, lots of common ground there. But what's the differentiator if you'd to choose one over the other?...yes, one pays around 3 times the interest the other one does.

    Now if you go for Marcus over TSB you're probably on the wrong website.
    Originally posted by YorkshireBoy
    Looks like we've cross posted!

    I think this is the way forward then, if TSB are ok with the £500 I pay in being the same £500 I just took out!
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