Investing overdraft vs Staying in Credit...confused! Watch

snu
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#61
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#61
(Original post by Astor)
That *NET* 5.5% ?????????
No, gross. If you're earning under £5k a year, you can get interest paid gross; otherwise you should be looking at ISAs which are tax-free.
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snu
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#62
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#62
(Original post by Astor)
My monthly Saver says i get a Net % of 6.4% for one year and then I get only 2.92% after 12 months! How can it drop so much? That's probably on par with inflation - surely there is another way.
Because they're trying to hook you in with a good deal and then do a bait and switch and leave you to suffer afterwards.
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Sephiroth
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#63
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#63
So it's best to have:

A) Student account with one bank.
B) ISA somewhere.
C) High interest savings account somewhere.

? That's three accounts, and possibly three different banks. Four in my case since I don't want to stay with LloydsTSB for a student account. How do you guys manage all those accounts? Is it wise to have four different accounts? Or even three if I closed the LloydsTSB one?
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Minardi
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#64
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#64
Yep, provided you don't pay tax (your a student, so you shouldn't).

ICICI: http://www.icicibankukhisavepromotio...&USERTYPE=F_TL

Sainsburys:

http://www.sainsburysbank.co.uk/savi...ngs_zone.shtml

On the subject of regular saver, the idea is that after a year you forget about it and leave it there, therefore they make money on yours.

Minardi
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Minardi
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#65
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#65
(Original post by Sephiroth)
So it's best to have:

A) Student account with one bank.
B) ISA somewhere.
C) High interest savings account somewhere.

? That's three accounts, and possibly three different banks. Four in my case since I don't want to stay with LloydsTSB for a student account. How do you guys manage all those accounts? Is it wise to have four different accounts? Or even three if I closed the LloydsTSB one?
If your organised, and want to make the most of your money, yes. Probably a credit card elsehwhere too if you feel the need.

I live 25 minutes from town, I do everything online. I haven't been to a bank for 12 months. On the odd occasion I need to do cash, I go to the village post office (5 minute drive) and sort it there. Easy.
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Sephiroth
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#66
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#66
I've never heard of ICICI. Slightly higher interest than Icesave so it sounds better. Depends on other factors too though, such as how likely they are to lower that rate.

So where is the best place to get an ISA?

And why do you say a credit card elsewhere? Why not with the same bank your student account is at?
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Minardi
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#67
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#67
Depends what you can get. My bank wouldn't accept me, but if your bank will give you a student CC, its better.

The HiSAVE gross interest rate will be at least 0.25% above the Bank of England Base Rate, until 31 December 2007
And if they don't continue to follow it, you can move.

Egg has the best ISA rate currently, FYI, that I can find. (6.05%). The rate is less, but the good thing is, if you put 3.6k (its going up from next april) a year in, your going to have over 9K in an account that can't have its interest taxed, even when you leave Uni.

Minardi
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Minardi
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#68
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#68
Also, just found NS&I offer 6.3% if you have 1k to put away straight away.
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Sephiroth
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#69
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#69
Icesave seem to have a better guarantee than HiSAVE, guaranteeing 0.25% above until October 09, but like you say you can switch. I notice Icesafe only do 6.03% if you want your interest monthly rather than annually at 6.20%. Does HiSAVE do similar or does getting it annually not matter?

I've never heard of NS&I. Is that for ISA or savings? I'm a bit wary of banks I've never heard of, but I'm sure most of them are fine.

I've heard good things about Egg so I'll probably use them.
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Minardi
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#70
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#70
NS&I is owned by the Government (I think). Take that as you will.

As for interest, it doesn't really matter, its calculated daily I beleive. HiSave pays monthly, FYI.
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Minardi
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#71
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#71
Our story
The story of National Savings and Investments

In 1861 the Palmerston Government set up the "Post Office Savings Bank" - a simple savings scheme aiming to encourage ordinary wage earners "to provide for themselves against adversity and ill health".

The scheme quickly became very popular, and the deposits found their way from the Post Office to the Exchequer, providing a fund which the then Chancellor, Gladstone, could borrow for putting towards public spending.
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Sephiroth
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#72
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I guess they both have their good and bad points. But HiSAVE seems a bit better.
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Sephiroth
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#73
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#73
"On positive verification, we will send you an email with a request to send a cheque of minimum £1.00 towards your initial deposit."

Is that the only way you can deposit your £1 to open the account? I'm not sure if I can write cheques with my current bank account. Or maybe I'll just wait until I get a student account.
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Minardi
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#74
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#74
I assume so. Having the student account first is probably the easiest way, as you can move everyhting through that account.
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snu
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#75
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[QUOTE=Sephiroth]Icesave seem to have a better guarantee than HiSAVE, guaranteeing 0.25% above until October 09, but like you say you can switch. I notice Icesafe only do 6.03% if you want your interest monthly rather than annually at 6.20%. Does HiSAVE do similar or does getting it annually not matter?[/URL] 6.03% is an AER of 6.20%, so if you pay the interest into the account and compound it, it'll be exactly the same.

I've never heard of NS&I. Is that for ISA or savings? I'm a bit wary of banks I've never heard of, but I'm sure most of them are fine.
Icesave is a trading style of Landsbanki Islands, the national bank of Iceland. ICICI is slightly sketchier in that they don't subscribe to the Banking Code. NS&I is a branch of the Government and backed by the Treasury.
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Sephiroth
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#76
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I'm not sure what the term "compound it" means but I think I understand, in that the monthly interest once paid will generate some interest itself.

ICICI not subscribing to the banking code doesn't sound good, but I don't know what that means for the customer. I think I would feel safer with Icesave. 0.10% less interest isn't going to be much. NS&I sounds like a good deal too however. Which would you choose Snu?
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Minardi
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#77
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#77
I didn't know that about ICICI, thanks for the info.

I'd go with the ICESave-NS&I Combo myself

(Oh, guess what I (nearly) have....)
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Sephiroth
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#78
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#78
Why both of them? I take it NS&I for ISA? Why not Egg?
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uni_Boy
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#79
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#79
edited......
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Minardi
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#80
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#80
Higher rate (I had the 3K to put away straight away, so thats where it went.)

Egg offers 6.05%/NS&I 6.30%
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