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  • FIRST POST
    • i3arty
    • By i3arty 15th Jan 20, 2:22 PM
    • 3Posts
    • 0Thanks
    i3arty
    Is there even point of saving accounts if you only have 2-3k savings?
    • #1
    • 15th Jan 20, 2:22 PM
    Is there even point of saving accounts if you only have 2-3k savings? 15th Jan 20 at 2:22 PM
    Hi all,
    So i checked saving accounts in my bank (HSBC) and the max i would get is 2.75% AER. If i want to save 3000, so paying either 25 or 250£ a year. Which will result in 4£ or 44£ over year which is not that much.
    On top of that the other flexi savers have 0.10% which there is not point really at all it could as well be 0%.
    I been thinking of saving my money on starling bank as you can put it into many different categories (Which will be way easier than for example HSBC where you cannot rename flex saver) People were saying "oh no their rate is really poor % no point keeping savings there" But when i checked their saving account has 0.5% rate so thats way better.


    Maybe i'm wrong, maybe then meant to putting my money somewhere else. I mean i only have roughtly 2-3 savings maybe in end of this year will make 5-6 who knows, so i think % doesn't really matter much, more of a convinience unless you guys know some other saving ways.

    Thanks for help !
Page 1
    • fun4everyone
    • By fun4everyone 15th Jan 20, 2:27 PM
    • 1,974 Posts
    • 3,185 Thanks
    fun4everyone
    • #2
    • 15th Jan 20, 2:27 PM
    • #2
    • 15th Jan 20, 2:27 PM
    There is a point yes and it's learning about it and getting into good habits for when you have more money in the future. Plenty of people would do bad things to have £2000-3000 it's not to be sniffed at. You should look at TSB and Nationwide current accounts (if you have not already used the 5% for a year there).
    • swagster92
    • By swagster92 15th Jan 20, 3:04 PM
    • 29 Posts
    • 5 Thanks
    swagster92
    • #3
    • 15th Jan 20, 3:04 PM
    • #3
    • 15th Jan 20, 3:04 PM
    Switch to Nationwide, get £100 for free and put your money in there to get 5% return. The return you will make on this given the time to set up will be in the order of £100s per hr.
    • JamesWhite19
    • By JamesWhite19 15th Jan 20, 4:51 PM
    • 1 Posts
    • 2 Thanks
    JamesWhite19
    • #4
    • 15th Jan 20, 4:51 PM
    • #4
    • 15th Jan 20, 4:51 PM
    I agree with swagster92 above.


    I am in a similar situation, over the last 12 months I paid in to a regular savings account (and had £1500 in my TSB account making 3%) I now have a friend referral code to use for Nationwide to get the £100 and as I now have the cash saved up I am now able to max out the £2500 at 5% in the Nationwide. I also have a HSBC Reg saver that I just opened at 2.75% and a Marcus account for spare cash at 1.35%

    I am not sure what I will do once the Nationwide account stops the interest but thats a problem for next years me to think about over christmas!



    There are probably better ways of managing it but just keep at it as over time it builds up.
    • i3arty
    • By i3arty 18th Jan 20, 11:09 PM
    • 3 Posts
    • 0 Thanks
    i3arty
    • #5
    • 18th Jan 20, 11:09 PM
    • #5
    • 18th Jan 20, 11:09 PM
    Thanks.
    So basically if i open bank account with nationwide, i get 100£ for free + 5% interest rate, but can i use this account as my main bank? for example can i make payments etc with it? (Idk might sound stupid but why do you have like 3 bank accounts for different things, cant you use nationwide for saving+ spending?
    • YorkshireBoy
    • By YorkshireBoy 18th Jan 20, 11:24 PM
    • 31,141 Posts
    • 19,177 Thanks
    YorkshireBoy
    • #6
    • 18th Jan 20, 11:24 PM
    • #6
    • 18th Jan 20, 11:24 PM
    So basically if i open bank account with nationwide, i get 100£ for free + 5% interest rate, but can i use this account as my main bank?
    Originally posted by i3arty
    You could, but why would you choose to spend your £2-3K savings? Why not "save" them instead and spend from your income which is paid into another account?
    for example can i make payments etc with it?
    Of course you can, it's a current account just like the one you have at HSBC.
    (Idk might sound stupid but why do you have like 3 bank accounts for different things
    Savings interest, Rewards, access to higher interest regular savers, BTL account, donor accounts for switching incentives, etc, etc.
    , cant you use nationwide for saving+ spending?
    See my first reply above.
    • Zero Sum
    • By Zero Sum 18th Jan 20, 11:52 PM
    • 1,524 Posts
    • 1,232 Thanks
    Zero Sum
    • #7
    • 18th Jan 20, 11:52 PM
    • #7
    • 18th Jan 20, 11:52 PM
    Thanks.
    So basically if i open bank account with nationwide, i get 100£ for free + 5% interest rate, but can i use this account as my main bank? for example can i make payments etc with it? (Idk might sound stupid but why do you have like 3 bank accounts for different things, cant you use nationwide for saving+ spending?
    Originally posted by i3arty
    I have a Santander 123 (lite) for household bills as I get cashback on the DD's
    I have a Co-OP everyday rewards account for small spends as I get cashback on debit card transactions + £4 reward.
    I have a TSB account which just holds £1500 cos i get 3% on it
    I have a couple of Halifax reward accounts cos I get £4 cashback a month
    I have a first direct account cos they paid me £125 to switch & have a 5% reg saver
    I have a nationwide account cos of the 5% interest (which has expired) but also still have 5% reg saver
    I have a tesco account cos they used to pay 3% but can still earn clubcard points from it from 'non spend' transactions
    I have a lloyds account cos they paid me £125 & get free subscription to Q magazine.
    • sebtomato
    • By sebtomato 19th Jan 20, 9:47 AM
    • 640 Posts
    • 158 Thanks
    sebtomato
    • #8
    • 19th Jan 20, 9:47 AM
    • #8
    • 19th Jan 20, 9:47 AM
    I been thinking of saving my money on starling bank as you can put it into many different categories...But when i checked their saving account has 0.5% rate so thats way better.
    Originally posted by i3arty
    Starling only pays 0.5% interest on balances up to £2,000, and the 0.25% after that.
    • Binkie Huckaback
    • By Binkie Huckaback 19th Jan 20, 11:57 AM
    • 21 Posts
    • 18 Thanks
    Binkie Huckaback
    • #9
    • 19th Jan 20, 11:57 AM
    • #9
    • 19th Jan 20, 11:57 AM
    I'm by no means an expert, but I found that interest rates on easy-access savings accounts are so meagre I prefer to buy Premium bonds. Bit like playing the lottery, except you're not throwing your money down the drain (!) and if you haven't got much ££ to invest, it's a good way to encourage you to save more, as the more you have the more chance you have of winning something.

    Probably not for everybody, but each to their own
    • eastcorkram
    • By eastcorkram 19th Jan 20, 2:00 PM
    • 167 Posts
    • 44 Thanks
    eastcorkram
    I can see the idea that it may as well go into premium bonds, but given the huge amounts of money people on this forum have invested, it's staggering to see that hardly anyone ever seems to win more than a £25 prize.
    • Binkie Huckaback
    • By Binkie Huckaback 19th Jan 20, 6:53 PM
    • 21 Posts
    • 18 Thanks
    Binkie Huckaback
    Thanks, that's worth knowing. Mind you I've never known anyone win big on the lottery either, lol
    • Albermarle
    • By Albermarle 19th Jan 20, 7:06 PM
    • 2,214 Posts
    • 1,454 Thanks
    Albermarle
    The calculated average return from Premium Bonds is 1.4% . The more you hold the more you will be near the average.
    However the 2 X One Million Pounds prizes each month skew the figure .
    In reality on average if you have £10K in premium bonds you will gain about £125 a year ( 1.25% ) with a very very small chance of a big prize one day.
    • Eco Miser
    • By Eco Miser 19th Jan 20, 7:15 PM
    • 3,664 Posts
    • 3,438 Thanks
    Eco Miser
    I can see the idea that it may as well go into premium bonds, but given the huge amounts of money people on this forum have invested, it's staggering to see that hardly anyone ever seems to win more than a £25 prize.
    Originally posted by eastcorkram
    £25 prizes massively outnumber the rest. You'll notice on the dedicated thread that some people win several £25 prizes in the same month.

    Also, if you won a £million, or even £50k, would you announce it on here?
    Eco Miser
    Saving money for well over half a century
    • SSTJCKel
    • By SSTJCKel 20th Jan 20, 12:20 PM
    • 1 Posts
    • 0 Thanks
    SSTJCKel
    Just a correction for the OP you can rename an HSBC Flexsaver account. Go into online banking and send them a message asking them to rename it and they will. I have 3 Flexsavers all with different names.
    • Binkie Huckaback
    • By Binkie Huckaback 20th Jan 20, 12:50 PM
    • 21 Posts
    • 18 Thanks
    Binkie Huckaback
    £25 prizes massively outnumber the rest. You'll notice on the dedicated thread that some people win several £25 prizes in the same month.

    Also, if you won a £million, or even £50k, would you announce it on here?
    Originally posted by Eco Miser

    I didn't know there was a thread dedicated to Premium Bonds, sorry if I've taken this one a bit off topic.
    • Eco Miser
    • By Eco Miser 23rd Jan 20, 9:00 PM
    • 3,664 Posts
    • 3,438 Thanks
    Eco Miser
    "Premium Bond Winner ?" https://forums.moneysavingexpert.com/showthread.php?t=81778
    Eco Miser
    Saving money for well over half a century
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