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Managing My Savings & The Best Accounts
Options

imogenc
Posts: 1 Newbie
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.
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.
0
Comments
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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.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
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-ISAs0
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