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How do I open a savings account? Watch

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    Hi
    I want to open a savings account so that I can put away some of the money I get every month.
    Firstly, how does this work - can I set it up to transfer money weekly? monthly?
    What kind of account shuld I be looking to open - I'm using the Lloyds internet banking service and there are quite a few different types such as 'eSavings account', 'incentive saver' and 'cash ISA saver.' These all say things like 'Earn 1.60% AER / Gross from £1, and up to 2.50% AER / Gross on balances of £10,000 or more' and I have no idea what this means - should I go into the bank to discuss this with someone and open it there? Bascially, I just want to put a small percentage of the money that goes into my bank account away somwhere that I can just let it build up.
    Thank you and sorry for some possibly silly questions
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    Somebody must know! :iiam:
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    Oh god, when you find out please let me know. I'm honestly so stuck too!
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    Well, there are lots of options.

    If you are under 18, or not earning enough to pay tax (probably if you're a student) then you probably don't need an ISA, which is an account where they don't tax you. I also think you usually can't pay in to an ISA in little bits so wouldn't suit what you need. If they pay a good rate of interest there's nothing stopping you though.

    Definitely the best thing is to go in to the bank and explain exactly what you want (ie. how much you want to put in it roughly, whether you need to be able to access it quickly eg in an emergency, whether you need a cheque book, card, savings book etc.) They will let you know the options and explain them all in simple terms so you can understand. Check there are no requirements you can't meet like having to pay a certain amount in or something like that.

    This is what I always do, they seem to pick the most suited account very well!

    I like Natwest as a bank, but you might want to go with a building society for a savings account, seen as they're more customer orientated. I'm no banking expert though.

    Nationwide are a building society, and Norwich and Peterborough if you're in the East. I have savings with both of them, and accounts with Natwest, all are good.

    Hope this helps!
    xxx
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    (Original post by un-besito)
    Hi
    I want to open a savings account so that I can put away some of the money I get every month.
    Firstly, how does this work - can I set it up to transfer money weekly? monthly?
    What kind of account shuld I be looking to open - I'm using the Lloyds internet banking service and there are quite a few different types such as 'eSavings account', 'incentive saver' and 'cash ISA saver.' These all say things like 'Earn 1.60% AER / Gross from £1, and up to 2.50% AER / Gross on balances of £10,000 or more' and I have no idea what this means - should I go into the bank to discuss this with someone and open it there? Bascially, I just want to put a small percentage of the money that goes into my bank account away somwhere that I can just let it build up.
    Thank you and sorry for some possibly silly questions
    How do I open a savings account? Pop into your bank and ask to open a savings account.

    You can set up a regular transfer to happen weekly, monthly, annually etc

    Essentially, the AER is the interest you'll earn per year, so you'd earn 1.6% on anything between £1 and £9,999.99; and 2.5% on anything £10,000 or above.

    You'll probably want an ISA account, which has a tax-free limit of [currently] £10,200, so you'll put money in, won't be taxed, but you'll earn interest on top.

    Best bet though is to go into your bank branch and ask, as they can set up your monthly payments etc for you
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    (Original post by DarkWhite)
    How do I open a savings account? Pop into your bank and ask to open a savings account.

    You can set up a regular transfer to happen weekly, monthly, annually etc

    Essentially, the AER is the interest you'll earn per year, so you'd earn 1.6% on anything between £1 and £9,999.99; and 2.5% on anything £10,000 or above.

    You'll probably want an ISA account, which has a tax-free limit of [currently] £10,200, so you'll put money in, won't be taxed, but you'll earn interest on top.

    Best bet though is to go into your bank branch and ask, as they can set up your monthly payments etc for you
    Thank you very much!
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    (Original post by kpwxx)
    Well, there are lots of options.

    If you are under 18, or not earning enough to pay tax (probably if you're a student) then you probably don't need an ISA, which is an account where they don't tax you. I also think you usually can't pay in to an ISA in little bits so wouldn't suit what you need. If they pay a good rate of interest there's nothing stopping you though.

    Definitely the best thing is to go in to the bank and explain exactly what you want (ie. how much you want to put in it roughly, whether you need to be able to access it quickly eg in an emergency, whether you need a cheque book, card, savings book etc.) They will let you know the options and explain them all in simple terms so you can understand. Check there are no requirements you can't meet like having to pay a certain amount in or something like that.

    This is what I always do, they seem to pick the most suited account very well!

    I like Natwest as a bank, but you might want to go with a building society for a savings account, seen as they're more customer orientated. I'm no banking expert though.

    Nationwide are a building society, and Norwich and Peterborough if you're in the East. I have savings with both of them, and accounts with Natwest, all are good.

    Hope this helps!
    xxx
    Thank you! That does help, I will go into the bank to get it sorted.
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    Get a debit card.
    It has checkings/savings account.
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    'How do I open a savings account?' It's an easy question to ask, but difficult to answer.

    It depends entirely on what you are wanting to get from it.

    Ask yourself the following questions:

    1. Do you expect to only keep money there in the short term (e.g. between now and the end of university), or do you hope to use it to, e.g., build up a deposit for a house for after you leave uni?

    Short term: Go to Question 2.
    Long term: Go to 3.

    2. Do you want the money to be accessible easily, from within your existing Lloyds TSB internet banking?

    Yes: Try the Lloyds TSB e-Savings account. Pays very little interest, but is a safe place to keep your cash.
    No, I'd rather keep it at another bank, where I'm less likely to use it!: Something like the Halifax ISA Direct Reward. This has a good interest rate (for the first year), but also a safe home and is set apart from your main current account.

    3. As you'll be keeping the money for several years, it's important that you make sure you get a high rate on your money. An ISA is an excellent place to start, but as most banks change their rates once a year, whichever one you do go with, make sure you make a diary note to check the rate in a year's time. A good and easy way of doing this is to post on http://forums.moneysavingexpert.com. There are a lot of very experienced people on there who would be able to help you through transferring your ISA into one with a higher rate, once that one drops.

    To start, I'd open the Halifax ISA Direct Reward. This has a really good interest rate for the first year, although just bear in mind that it'll drop 12 months after you open it.
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    (Original post by kpwxx)
    I like Natwest as a bank
    :confused:

    That is very unusual. They do not have a good reputation as a bank.

    (Original post by kpwxx)
    but you might want to go with a building society for a savings account, seen as they're more customer orientated. I'm no banking expert though.
    Building societies have a bit more of a customer-oriented reputation, that is true. On the whole this is because they are so much smaller.

    In terms of a basic savings account, it won't make a jot of difference whether you go with a bank or a building society - just choose whoever fits your needs best; be that good interest rate, local branch, good internet access, etc. (Although I would stay away from Santander and Natwest if you can - in banking circles these two banks have poor reputations for customer service).
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    (Original post by rpb123)
    :confused:

    That is very unusual. They do not have a good reputation as a bank.



    Building societies have a bit more of a customer-oriented reputation, that is true. On the whole this is because they are so much smaller.

    In terms of a basic savings account, it won't make a jot of difference whether you go with a bank or a building society - just choose whoever fits your needs best; be that good interest rate, local branch, good internet access, etc. (Although I would stay away from Santander and Natwest if you can - in banking circles these two banks have poor reputations for customer service).
    I have seen one or two people on TSR before saying about poor service from natwest, but I found it really weird! They've always been great, really friendly and helpful for me. This is at my home branch, city branch and the branch on my campus. Although I know a friend from Malvern who said that his home branch wasn't too good.

    I suppose it depends on the branch you go to really. I like other stuff they have like weekend opening, later opening times, good online banking system, statements for free to use for identity purposes, worthwhile freebie with their student account etc. But a lot of this isn't relevant for savings accounts so much.

    xxx
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    (Original post by kpwxx)
    I suppose it depends on the branch you go to really.
    Personally, I don't agree here. In the banking industry, their general administration is not considered so good. This is why their recent ad campaign is around customer service - because they know that this is an area where they are lacking. It's not that there are one or two branches that aren't operating as they should, it's that the whole bank is struggling to provide decent customer service. Why else would you see massive banners everywhere you go promising that they will do better next time?

    (Original post by kpwxx)
    I like other stuff they have like weekend opening
    This is just an advertising gimmick - it's not actually true. Only around 40% of Natwest branches are open on Saturdays, which is a tiny percentage when compared to other banks. Halifax are at the top, with around 70-80% of branches open at weekends. Most banks lie around the 60% mark.

    Natwest's 'Saturday opening' advert was pulled by the Advertising Standards Agency (the Govt agency that ensures all adverts comply with certain standards) because they do not deem that Natwest has enough branches open on Saturdays to merit the advert.

    (Original post by kpwxx)
    later opening times
    Most banks close at 5pm during the week.

    Many, if not most, Natwest branches close at 4.30pm during the week.

    Not sure how this is 'later'?

    (Original post by kpwxx)
    good online banking system
    ... but not as good as other banks.

    (Original post by kpwxx)
    statements for free to use for identity purposes
    What bank doesn't provide this?

    (Original post by kpwxx)
    worthwhile freebie with their student account etc
    Yes! Agree here! Natwest's one saving grace.
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    Hi.

    I bank with Lloyds too, and they are doing a savings account which is running at around 4% AER at the moment, so I would choose that one. However, if you are working I would recommend getting an ISA as you are able to save tax free.

    If you are a student then an ISA would be pointless as you're not paying tax, so go for the 4% AER account with Lloyds.

    You can set up payments to go out weekly, monthly, quarterly or yearly, whatever you like. This is all simplified if you have online banking, otherwise you will have to do it over the telephone or in Branch.

    AER is just the term for the interest rate on your savings. It stands for 'Annual Equivalent Rate' and is just the percentage of interest you will get from what you save per year.

    Banks often offer higher interest rates if you choose to save a lot of money with them (i.e 5% AER if you have over £10,000) this is because they can make more money off of your money therefore offering you a better rate of interest.

    I hope this answers all your questions.

    TG


    Edit: Just looked and looks like Lloyds have stopped that 4% savings account now, the best you'll get is a fixed rate bond at 3.75% for 3 years, maybe the BOE has changed it's interest rates again.
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    (Original post by rpb123)
    Personally, I don't agree here. In the banking industry, their general administration is not considered so good. This is why their recent ad campaign is around customer service - because they know that this is an area where they are lacking. It's not that there are one or two branches that aren't operating as they should, it's that the whole bank is struggling to provide decent customer service. Why else would you see massive banners everywhere you go promising that they will do better next time?



    This is just an advertising gimmick - it's not actually true. Only around 40% of Natwest branches are open on Saturdays, which is a tiny percentage when compared to other banks. Halifax are at the top, with around 70-80% of branches open at weekends. Most banks lie around the 60% mark.

    Natwest's 'Saturday opening' advert was pulled by the Advertising Standards Agency (the Govt agency that ensures all adverts comply with certain standards) because they do not deem that Natwest has enough branches open on Saturdays to merit the advert.



    Most banks close at 5pm during the week.

    Many, if not most, Natwest branches close at 4.30pm during the week.

    Not sure how this is 'later'?



    ... but not as good as other banks.



    What bank doesn't provide this?



    Yes! Agree here! Natwest's one saving grace.
    To be honest, I don't really know much about the main reputation of the banks- pretty much all of my opinions are based on either my own personal experience or my friends and families experiences.

    If you know more about the overall rep of banks you're in a better position to say which ones are best
 
 
 
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