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Savings Account
BillieTheBot
Posts: 8,721 Bot
I have quite alot of money (around a grand) that I don't actually need and was thinking about putting it into a savings account so that I could use it later on in life - meaning that I won't be able to touch any of it for now.
I was wondering if I just need to go into a bank and ask to set up a savings account or is there quite a bit more to it?
I was wondering if I just need to go into a bank and ask to set up a savings account or is there quite a bit more to it?
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No that's it really! However, look on moneysupermarket.com to compare rates and products. :thumb:
However, if i were you, and you're really not intending on spending it, i'd put it into an ISA with no instant access, as they offer a better rate of return, they're tax free provided you put less than the threshold in (about 3k per financial year, i think) AND if you can't get instant access then you're less likely to fritter the money away
There are loads of comparison websites out there for the best interest rate - i think Halifax are doing quite a good one at the moment
Is there such a thing in the UK?
Thanks for the help. Is it possible for me to have a normal (well, under 19s) bank account with Lloyds and have a savings account with another bank?
You can a bank account with one and savings with another no problems. A ISA with 60/90 days withdrawal notice is a good idea. You can get long term bond deposits (for anything from a year upwards) but the intrest paid is subject to tax, and if you need the money back before the end of the term you can get charged penalties.
Yeh you can have as many bank accounts/savings accounts as you want/bank will let you have....you can just have one ISA per tax year.
Yeah! Just find the highest interest rate savings account you can and go with them.
A savings account you can put as much as you like in, but you'll get taxed on any interest.
With both of them, you can get a withdrawal notice of 60/90 days, and they will probably give you better interest rates, plus you'll be less likely to spend it if you can't get it instantly!
Seriously, you should check out http://www.moneysavingexpert.com - it's great for things like this.
ETA: Here's an article about ISAs and the best one avaliable at present: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1077487692,12362,
If you look at some big companies buying shares in them over the long term (think 5 - 10 years) and reinvest the dividends often it works out a bit better. But nothing wrong with an ISA at all.
yep. go to the bank and get it set up. remember to take id with you.
yeah but some banks require 2 forms of id for each:
2 for your address and 2 for your id.
Utility bills or bank statements can also be used for your address?
oops, second one wasnt supposed to have a ? lol.
What I meant was I've set up bank accounts recently and they only needed one proof of address and one proof of name, and passport and driving licence sufficed for me!
well thats good, depends on the bank.
TBH, I'm not worried about how much money I'll make in the next few years or so - I want to put some money back so that I have some money for later on in my life. (moving out, education, etc)
I have a CD that ends during christmas. So i will have a bunch more money, its a great option, not sure about UK but in the US it's a great option for the money you make.