Best bank account for paying in ~ £1700mo?

36 replies
Found 19th Dec 2016
Evening all

Im currently with Halifax and dont feel like they are worthy of having my money as I get virtualy no benefits from the account other than the occasional cashback for shopping at places I never go to.

Just wondered if theres any better banks out there worth moving to? Perhaps theres some that pay me monthly interest on my wage or offer money for switching? etc.

I dont have any savings but I do want to stary putting away probably 50 quid a month now for my child for when hes 18 and also id like to put away a couple hundred pounds into my own savings account. Again with halifax I get literally 0% interest with my savings account!

TIA

36 Comments

Would have to be Nationwide 5% or TSB 3% for high interest or access to a high interest account . You can check out the benefits yourself but I've had both for a few years now .

Original Poster

How does the interest work? I dont understand what it means when people say 5%. Do you get paid 5% on your balance at a certaib point or something?

Also I read about these bank accounts that pay cashback on bills you pay?

Nationwide Flex Direct - no fee, 5% interest for 12 months, you can also add a flexclusive regular saver, which is also 5% for the first year (although I believe at the end of the first year, you can close it, and open another saver account for 5% for a year again - they just wrote to me to tell me I could). If you know someone who is already with Nationwide and they recommend you, you get £100 each for switching.
Edited by: "cosmicdav3" 19th Dec 2016

talking of this, what account is best to store high amounts, Something over 100k?

Original Poster

cosmicdav3

Nationwide Flex Direct - no fee, 5% interest for 12 months, you can also … Nationwide Flex Direct - no fee, 5% interest for 12 months, you can also add a flexclusive regular saver, which is also 5% for the first year (although I believe at the end of the first year, you can close it, and open another saver account for 5% for a year again - they just wrote to me to tell me I could). If you know someone who is already with Nationwide and they recommend you, you get £100 each for switching.



​So does that count if i recommend my partner to join? Also does that account pay cashback on bills? Can you explain the interest on the account please? Does it just pay monthly amount of interest on your balance or a certain day or something?

Aaronnnn

talking of this, what account is best to store high amounts, Something … talking of this, what account is best to store high amounts, Something over 100k?


Depends how long you want to "store" it for and if you need ready access to it . There is no simple answer - interest rates being so low even for large sums - so If you have that much I suggest you do your own research or get a Financial advisor .

bbfb123

​So does that count if i recommend my partner to join? Also does that a … ​So does that count if i recommend my partner to join? Also does that account pay cashback on bills? Can you explain the interest on the account please? Does it just pay monthly amount of interest on your balance or a certain day or something?


You can't really expect folks to go through it page by page . The Nationwide site is quite self explanatory and an easy read , I would recommend it to you .

rogparki

Depends how long you want to "store" it for and if you need ready access … Depends how long you want to "store" it for and if you need ready access to it . There is no simple answer - interest rates being so low even for large sums - so If you have that much I suggest you do your own research or get a Financial advisor .



I noticed it, its in my lloyds account for the past year. Just had a look and got about 3 grand interest. Thank you anyway

Put it into an ISA

Aaronnnn

talking of this, what account is best to store high amounts, Something … talking of this, what account is best to store high amounts, Something over 100k?



You'd be best of investing into property if you have that much lying about.
Or give some to me I'll look after it lol

Aaronnnn

I noticed it, its in my lloyds account for the past year. Just had a look … I noticed it, its in my lloyds account for the past year. Just had a look and got about 3 grand interest. Thank you anyway


I would definitely speak to a financial advisor , mind you 3% is very good these days .

Toon_army

You'd be best of investing into property if you have that much lying … You'd be best of investing into property if you have that much lying about.Or give some to me I'll look after it lol



aha I invest in property

rogparki

I would definitely speak to a financial advisor , mind you 3% is very … I would definitely speak to a financial advisor , mind you 3% is very good these days .



Yeah I will ring him tomorrow. Thank you

Aaronnnn

Yeah I will ring him tomorrow. Thank you


They are generally worth the money and know stuff us normal folks don't (like tax avoidance ,legal- as opposed to tax evasion illegal ) , otherwise they would never get any business.

bbfb123

​So does that count if i recommend my partner to join? Also does that a … ​So does that count if i recommend my partner to join? Also does that account pay cashback on bills? Can you explain the interest on the account please? Does it just pay monthly amount of interest on your balance or a certain day or something?



You need to be recommended by an existing Nationwide customer. On the current account, interest is paid monthly, on the savings account it is paid annually. The Nationwide website explains how they calculate the interest, and when it is paid. There are no cash back rewards for things such as utility bills paid using the account, but it is a fee free account with market leading interest, so you would be hard pushed to do better IMO

Original Poster

cosmicdav3

You need to be recommended by an existing Nationwide customer. On the … You need to be recommended by an existing Nationwide customer. On the current account, interest is paid monthly, on the savings account it is paid annually. The Nationwide website explains how they calculate the interest, and when it is paid. There are no cash back rewards for things such as utility bills paid using the account, but it is a fee free account with market leading interest, so you would be hard pushed to do better IMO



​This is perfect thanks for that answer. Ill have a look now re the interest.

rogparki

They are generally worth the money and know stuff us normal folks don't … They are generally worth the money and know stuff us normal folks don't (like tax avoidance ,legal- as opposed to tax evasion illegal ) , otherwise they would never get any business.



We have a family advisor, they are good people and I recommend everyone to have one. Or at least go through one when it comes to mortgages etc. I have always told people to keep away from directly approaching banks for mortgage deals.

Original Poster

cosmicdav3

You need to be recommended by an existing Nationwide customer. On the … You need to be recommended by an existing Nationwide customer. On the current account, interest is paid monthly, on the savings account it is paid annually. The Nationwide website explains how they calculate the interest, and when it is paid. There are no cash back rewards for things such as utility bills paid using the account, but it is a fee free account with market leading interest, so you would be hard pushed to do better IMO



​thanks

caz2705

Put it into an ISA



Unless you have millions and Millions there's no need anymore. The first £1k of all interest is tax free on any account.

Santander pays 1.50% up to 20,000 plus cash back on direct debits. I also has a savings account that you can put a limited amount in each month from your account which would do for your son.

£1700pm worried about interest... it's a new job you want Mr Branson

zombrex

£1700pm worried about interest... it's a new job you want Mr Branson


I don't get it........

Is your Halifax account the 'Reward' account if not then change it to that one and you'll get £3 a month as long as you pay in a minimum of £750 (I think) and have 2 direct debits. That will then be your main account.
For your savings open up 2 of Tesco CURRENT accounts - each of these will pay 3%AER on up to £3k with no mo they pay-ins or direct debits required. Once you've filled these accounts then you can start to think about using drip feed 'Regular Saver' accounts with some other banks to maximise your savings.

Savings accounts are useless at the moment because they are dependant on the Bank of England interest rate - currently set a ridiculously low level.

Get a Stocks and shares ISA, there you can invest in managed unit trusts where they do the investing for you and you get much better returns (although not all of them return money - so do your research).

I use Hargreaves Landsdown and they give you a detailed list of hundreds of unit trusts, you can sort them by various different values to work out which one is best.

mtuk1

Unless you have millions and Millions there's no need anymore. The first … Unless you have millions and Millions there's no need anymore. The first £1k of all interest is tax free on any account.



Except an ISA will get you better returns, it's not about how much tax, it's about how much return.

Bigfootpete

Except an ISA will get you better returns, it's not about how much tax, … Except an ISA will get you better returns, it's not about how much tax, it's about how much return.



That used to be true, but not now. The accounts that pay the best rates are almost all not Isas. They're current accounts and savings accounts.

Original Poster

zombrex

£1700pm worried about interest... it's a new job you want Mr Branson



​Were not all made of money, hence the reason for me asking this question to maximise amount of interest ai can get.

Anyway what are you doing up and about, I thought Grinch's stayed in around xmas time.

Original Poster

buttonpushervic

Is your Halifax account the 'Reward' account if not then change it to … Is your Halifax account the 'Reward' account if not then change it to that one and you'll get £3 a month as long as you pay in a minimum of £750 (I think) and have 2 direct debits. That will then be your main account.For your savings open up 2 of Tesco CURRENT accounts - each of these will pay 3%AER on up to £3k with no mo they pay-ins or direct debits required. Once you've filled these accounts then you can start to think about using drip feed 'Regular Saver' accounts with some other banks to maximise your savings.



Its not that account no its a bog standard account. I think im gonna go with the nationwide flex account since that pays 5% on balance for first 12 months. Then I could just move it after that period.

bbfb123

Its not that account no its a bog standard account. I think im gonna go … Its not that account no its a bog standard account. I think im gonna go with the nationwide flex account since that pays 5% on balance for first 12 months. Then I could just move it after that period.



The question is though how long does your account have the full £1700 a month in it? The chances are if you're paying bills etc from it and transferring out your savings etc then you won't earn more in interest than the reward you would get from the Halifax reward account anyway... The flex account is great if you intend to constantly have £2.5k in it but using it as a current account reduces the interest you will earn.

Original Poster

buttonpushervic

The question is though how long does your account have the full £1700 a … The question is though how long does your account have the full £1700 a month in it? The chances are if you're paying bills etc from it and transferring out your savings etc then you won't earn more in interest than the reward you would get from the Halifax reward account anyway... The flex account is great if you intend to constantly have £2.5k in it but using it as a current account reduces the interest you will earn.



​So how does the interest on the 2.5k work? Is it like daily they see how much your bank has then at end month they pay you?

That's exactly how the Nationwide FlexDirect account works, interest worked out daily on your balance, credited end of the month. The regular saver mentioned above is good as well if you want to nudge yourself into the saving habit. Same 5% interest but interest credited at end of the 12 months.
If on average your balance is less than £600 the Halifax reward account with 2 direct debits might be better as it pays £3/month

There's M&S bank's current account as well that pays £10/month in a gift card, good if you shop at M&S

Aaronnnn

talking of this, what account is best to store high amounts, Something … talking of this, what account is best to store high amounts, Something over 100k?



​A dividend ETF tracker fund (like SDY a US dividend ETF) in a shares ISA,

Original Poster

playdumb

That's exactly how the Nationwide FlexDirect account works, interest … That's exactly how the Nationwide FlexDirect account works, interest worked out daily on your balance, credited end of the month. The regular saver mentioned above is good as well if you want to nudge yourself into the saving habit. Same 5% interest but interest credited at end of the 12 months. If on average your balance is less than £600 the Halifax reward account with 2 direct debits might be better as it pays £3/month There's M&S bank's current account as well that pays £10/month in a gift card, good if you shop at M&S



​So if say i opened an account and left 2500 in it from day one would it accrue £125 a month every month for 12 months?

It's £125 per year

Original Poster

playdumb

It's £125 per year



​Eh how is 5% of 12x1700 £125 a year?

Aaronnnn

talking of this, what account is best to store high amounts, Something … talking of this, what account is best to store high amounts, Something over 100k?



​Mine.
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