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Savings Account

SystemSystem Posts: 8,585 Community Managers
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?

Comments

  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Sofie wrote: »
    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?

    No that's it really! However, look on moneysupermarket.com to compare rates and products. :thumb:
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Nope, you just go in with some ID - passport and a recent bill should do it, not a mobile one though.

    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 :)
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    I know in the United States you can have Certificates of Deposit (AKA CDs) where you can deposit the money and not be able to touch the money for X years in exchange for better interest rates than a savings account would offer.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Jayden wrote: »
    I know in the United States you can have Certificates of Deposit (AKA CDs) where you can deposit the money and not be able to touch the money for X years in exchange for better interest rates than a savings account would offer.

    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?
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Sofie wrote: »
    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.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Sofie wrote: »
    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?


    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.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Sofie wrote: »
    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?

    Yeah! Just find the highest interest rate savings account you can and go with them.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    And don't be afraid to call around, don't know how banks work there, but I've run into it where you can call the same bank, but a different branch location and they might have different interest deals/promotions things.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    What's the difference between an ISA & savings account? I've had a look on a few websites and still don't have a clue.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    ISA allows you to save something like £3000 (I think)tax free. This isnt the case with a bog standard saving account.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    An ISA is an account in which you can deposit up to £3000 per financial year and not get taxed on anything you make on it.

    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,
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    I thought about it, but if you put £3000 in the best ISA don't you only get back around £150 for the year? Seems slightly paltry, £12 a month or something, £3 a week ish.

    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.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Sofie wrote: »
    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?

    yep. go to the bank and get it set up. remember to take id with you.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    afaik for ID these days it's ok to take a passport (as proof of your address) and a driving licence (as proof of your identity)
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    ShyBoy wrote: »
    afaik for ID these days it's ok to take a passport (as proof of your address) and a driving licence (as proof of your identity)

    yeah but some banks require 2 forms of id for each:
    2 for your address and 2 for your id.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    really? I only needed one of each when I set up my bank account, and they've made it stricter now too.

    Utility bills or bank statements can also be used for your address?
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    ShyBoy wrote: »
    really?
    :yes:
    ShyBoy wrote: »
    Utility bills or bank statements can also be used for your address?
    :yes: but can only be used once
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    otter wrote: »
    :yes:

    :yes: but can only be used once

    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!
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    ShyBoy wrote: »
    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.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Spoke to my mum about this earlier today. She said that it's best for me to make an appointment to see a finacial advisor about at the bank. Apparantely, I can apply online as well.

    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)
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Jayden wrote: »
    I know in the United States you can have Certificates of Deposit (AKA CDs) where you can deposit the money and not be able to touch the money for X years in exchange for better interest rates than a savings account would offer.

    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.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Don't see a financial advisor at the bank, they're tied to the bank itself and will only be able to advise you on the bank's products. Go and see and IFA, they're (generally) free and they can advise you on all the products on the market.
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