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Best current and savings accounts for under 18s?

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    Can someone give me advice on the above?? I really know nothing about banks etc...

    For the savings account I'm happy to put in money regularly, but can't say how much it would be, and am happy to commit to not withdrawing anything till I'm say 18 (I'm 16 at the moment). Also I want highest possible interest rates..

    Also, someone told me it will actually benefit my credit rating if I open more than one bank account, can someone please explain this to me?

    Thanks
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    (Original post by KnightRider)
    Can someone give me advice on the above?? I really know nothing about banks etc...

    For the savings account I'm happy to put in money regularly, but can't say how much it would be, and am happy to commit to not withdrawing anything till I'm say 18 (I'm 16 at the moment). Also I want highest possible interest rates..

    Also, someone told me it will actually benefit my credit rating if I open more than one bank account, can someone please explain this to me?

    Thanks
    Err the credit rating thing.. can't see how, to be honest. You don't get any credit until you turn 18 so there's basically nothing for them to assess, no matter how many accounts you have!
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    As for saving accounts, I have no idea, sorry.

    Current accounts; they're all pretty poor, and about the same.
    It also depends on what you want the account for. Need internet access? Telephone banking? A local branch or just a site to use?
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    If your looking for the highest interest possible, you'll be wanting an e-account. First get a current account such as here; http://www.nationwide.co.uk/current_account/apply.htm and then apply for e-savings, 7% gross p.a
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    I sort of know about the credit rating part. I think it's something along the lines of you open an account with a linked credit card but dont use the credit card at all- or just dont spend anything into your overdraft. This would make it look to all the banks that you behave and will/could pay back loans and stuff so they are more likely to give you a loan.
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    (Original post by gyrase)
    If your looking for the highest interest possible, you'll be wanting an e-account. First get a current account such as here; http://www.nationwide.co.uk/current_account/apply.htm and then apply for e-savings, 7% gross p.a
    Well I'm more than happy to just manage my account online... in fact would prefer not to have paper statements..

    I recently opened a current account with A&L, but if I opened one or more with other bank accounts can that have any bad effects for now or the future?

    Also, am I right in saying savings accounts should have much higher interest rates than current accounts?
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    (Original post by KnightRider)
    Well I'm more than happy to just manage my account online... in fact would prefer not to have paper statements..

    I recently opened a current account with A&L, but if I opened one or more with other bank accounts can that have any bad effects for now or the future?

    Also, am I right in saying savings accounts should have much higher interest rates than current accounts?
    So long as you don't start going overdrawn (since you have no authorised overdraft under 18 years old) it's not gonna have a negative effect.

    Some say banks don't care if you've been with them for years, others say if you've had a young persons account with them, they're more keen to offer you incentives when you get a student account.
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    (Original post by KnightRider)
    Well I'm more than happy to just manage my account online... in fact would prefer not to have paper statements..

    I recently opened a current account with A&L, but if I opened one or more with other bank accounts can that have any bad effects for now or the future?

    Also, am I right in saying savings accounts should have much higher interest rates than current accounts?
    Theres no problem/bad effect in having more than 1 bank account.

    Current accounts are for people who'll be taking out there money often and more suitable for employees/business class, you get little or no interest for these. Savings accounts are the higher interest rate ones.
    (Original post by Hasty)
    So long as you don't start going overdrawn (since you have no authorised overdraft under 18 years old) it's not gonna have a negative effect.

    Some say banks don't care if you've been with them for years, others say if you've had a young persons account with them, they're more keen to offer you incentives when you get a student account.
    Thats true, they would offer more, my mum recieved 2000 shares from halifax when it was bought by another company or something, she sold them and recieved some £1000s.
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    Okay I see, could anyone link me to the highest interest paying current and savings accounts please?

    Thanks for help everyone.
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    anyone?
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    Just look around yourself;

    Lloyds TSB
    Natwest
    HSBC
    Barclays
    Abbey
    Alliance and Lester
    Woolwich
    etc, etc.
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    Nationwide is your best bet

    I signed up for it today

    Get a FlexAccount, then use internet banking to put practically everything into e-savings which gives you about 5% interest, probably the best you're going to get

    I think there's a bank which does like 10% interest, but you need to put at least 250 pounds in a month, to a maximum of 1000 overall.

    http://www.moneysupermarket.com/curr...D=572&Amount=1
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    (Original post by ArchedEdge)

    I think there's a bank which does like 10% interest, but you need to put at least 250 pounds in a month, to a maximum of 1000 overall.

    http://www.moneysupermarket.com/curr...D=572&Amount=1
    No it's just £25 a month for the Halifax 10% regular saver
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    i dont know about other banks so shop around, but im with lloyds, and i think i get 3.8% for my current account which is the under 19s account, and then i get 6.5% for the first year and 6% after that on my savings account which is the online saver. I also have this thing where whenever i spend money with my card for my current account it rounds the money up to the nearest pound and puts the change into the savings account which is pretty cool.
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    (Original post by iTalya)
    No it's just £25 a month for the Halifax 10% regular saver
    This one?
    http://www.halifax.co.uk/savings/regularsaver.asp

    Kinda pointless, you can't make withdrawals :confused:

    Could just use it to make yourself extra money on the side though?
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    I'm trying to have a look, but just finding it all so confusing.. I don't know where to start! The Halifax one looks good but I think I have to put in a fixed amount each month (is this righT?) so if I don't want to do this, is the Nationwide FlexAccount (with e-saver) the best bet?

    Also, is it best just to have one saving account and put money into it, or is it a good idea to have several?
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    (Original post by KnightRider)
    I'm trying to have a look, but just finding it all so confusing.. I don't know where to start! The Halifax one looks good but I think I have to put in a fixed amount each month (is this righT?) so if I don't want to do this, is the Nationwide FlexAccount (with e-saver) the best bet?

    Also, is it best just to have one saving account and put money into it, or is it a good idea to have several?
    You can't make any withdrawals with the Halifax one, so whatever money you put it in you can't take out until the 12 months are over, I think.

    Best bet would be Nationwide FlexAccount with e-savings, or the Alliance and Leicester one I linked earlier, if you have the time to constantly transfer money in and out of your account every month.

    And I'd stick with one account.
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    Okay, I actually signed up to Alliance & Leicester's Premier 21 plan, do you think someone could tell me if it is better to the Nationwide FlexAccount or not, and for what reasons? I would do it myself but really don't understand this...

    Also, I am trying to sign up to the FlexAccount but it gives me the option for a cash card, but not a debit carD? Can someone explain the difference, I really do want a debit card?
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    (Original post by KnightRider)
    Okay, I actually signed up to Alliance & Leicester's Premier 21 plan, do you think someone could tell me if it is better to the Nationwide FlexAccount or not, and for what reasons? I would do it myself but really don't understand this...

    Also, I am trying to sign up to the FlexAccount but it gives me the option for a cash card, but not a debit carD? Can someone explain the difference, I really do want a debit card?
    A cashcard is a card you can only use in Cash Machines. You won't get a debit card from Nationwide unless you are over 18 and even then they are incredibly stingy about giving them out moreso than other banks.
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    (Original post by KnightRider)
    Okay, I actually signed up to Alliance & Leicester's Premier 21 plan, do you think someone could tell me if it is better to the Nationwide FlexAccount or not, and for what reasons? I would do it myself but really don't understand this...

    Also, I am trying to sign up to the FlexAccount but it gives me the option for a cash card, but not a debit carD? Can someone explain the difference, I really do want a debit card?
    Well for that one, you have to put in at least 250 pounds a month, I presume you're getting this account for a job you have, and how much will you be getting paid every month?

    So if you don't get paid at least 250 a month, you'll need to transfer extra money from another account into the Alliance and Leicester. And then you have to insure that you don't go over 1000 in the account, otherwise the 10% doesn't apply anymore.

    So really, a lot of effort.

    And debit card takes money straight out the account, you don't really need it. Just stick with a cash card and withdraw money whenever you need it.
Updated: July 4, 2008
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