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  • FIRST POST
    • imogenc
    • By imogenc 5th Mar 18, 11:20 PM
    • 1Posts
    • 0Thanks
    imogenc
    Managing My Savings & The Best Accounts
    • #1
    • 5th Mar 18, 11:20 PM
    Managing My Savings & The Best Accounts 5th Mar 18 at 11:20 PM
    I’m 19 years old and currently working full time in my gap year before going to university in September.
    Working full time has given me the chance to save quite a lot of money, however I am still using the same NatWest bank account that I opened when I was 11 years old.
    Some of you may be screaming because this is probably the worst thing to maximise my savings - I think the interest rate is terrible.
    I want to maximise my savings I just don’t know the best way to do it.
    I have considered having a current account with a decent interest rate for my income to be paid into, and then a savings account to save some money every month, however these usually have a limit and I want to save £500 a month, with an initial deposit of £4500 which I’ve already saved.
    Because of this, I am now thinking about opening a current account for my income to be paid into, a savings account where I save the maximum amount each month and then a separate current account where I transfer a proportion of the money that I earn each month as ‘spending money’.
    I would be grateful if anyone could let me know if they think this is my best option, if they have any other suggestions, and which bank accounts they think I would benefit from the most.

    Thanks a lot ! This has really been stressing me out recently, as having my savings and spending money in the same account has made it hard to keep track of what I ‘can’ and ‘can’t’ spend.
Page 1
    • MallyGirl
    • By MallyGirl 6th Mar 18, 11:09 AM
    • 2,685 Posts
    • 7,688 Thanks
    MallyGirl
    • #2
    • 6th Mar 18, 11:09 AM
    • #2
    • 6th Mar 18, 11:09 AM
    If you are prepared for a bit of admin you could open 2 regular savers to get a decent rate on your £500 pcm. A Nationwide FlexDirect bank account would give you 5% on £2500 balance in the first year - you could then transfer elsewhere with a switching bonus or keep to give ongoing access to the Nationwide RS. You should be able to get a decent rate on most of it.
    Once you are a student you could get a Santander 123 Student account which would give 3% on £2k with no fees - plus it would give you access to a 5% RS for £200 pcm.
    • xylophone
    • By xylophone 6th Mar 18, 11:34 AM
    • 25,372 Posts
    • 14,968 Thanks
    xylophone
    • #3
    • 6th Mar 18, 11:34 AM
    • #3
    • 6th Mar 18, 11:34 AM
    A Nationwide Flexdirect account as above would be a good idea - it would give you 5% on £2,500 for a year and give you access to the Flexclusive regular monthly saver - 5% on £250 a month.

    Don't forget that you must deposit £1000 a month into the Flexdirect from an external account to get the interest- it can be in and out the same day by FP.

    https://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits

    You might consider a regular monthly E Saver from Virgin for the other £250 a month you wish to save.

    https://uk.virginmoney.com/savings/find/productpage?id=regular_e_saver_issue_9&DisableNav= False&FromETS2=False

    You can keep your Natwest account for your spending money.

    There are other savings accounts available to you.

    http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

    For when you become a student

    https://www.moneysavingexpert.com/students/Student-bank-account

    And if you will be a first time buyer

    https://www.moneysavingexpert.com/savings/lifetime-ISAs
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