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CAElite
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#1
Report Thread starter 3 years ago
#1
Hey folks

So just recieved another "Just to let you know! " letter from my bank (TSB) today to tell me my cash ISA interest is being slashed again and X fee is being added and X is changing in the terms etc etc. For me this is the last nail in the coffin for TSB, ~2 of the last ~8 years (I was initially with Lloyds TSB, it was my first ever bank account) I have been with this bank it has just been constant cuts and negative changes to my account so I have finally decided to shop around.

I am wandering what the recommendations are on here for current & savings accounts for students? I dont currently hold a student account just a standard "Classic+" savings account, a flex rate cash ISA with about a grand in it & I keep ~£1500 in my current account because of the favourable interest for balances under £2000, The APR rate for my current account is close to 5% for balances under £2k) I would prefer this to be much lower with better interest on my savings account (0.8% a year on £1+ balances) but, thats how the system seems to work out. I also hold a low limit (£200) credit card with Capital One I use for day to day purchases in the hopes of increasing my credit rating for when I leave college/uni (im just finishing my 1st of 3 years).

I would prefer to hold both my savings and current account with the same bank, my savings I would MUCH prefer to be flexible rate that I can withdraw and deposit to as I please.

Any recommendations are welcome, havnt really done much research myself yet, I am pretty good at money management but exploiting the perks of banking isnt really my strongpoint. I would be open to non-brick and mortar establishments as I have been recommended one (First Direct) by my dad, however he lives outside the UK now and says he isnt up to date with the banks anymore.

CAE
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CAElite
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#2
Report Thread starter 3 years ago
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Oh on this note, Other than the obvious protection from potential fraud of not having easy withdrawals, what is really the point in having a Savings account when you dont have much savings? TSB appears to offer the highest current account interest (4.8% with £500/m in) on balances up to £2000. (this is the current account I already have) The highest variable rate saver I can find is 1.45% with RCI Bank, would the most efficient means of money management not be too sit my TSB account at £2000 then open a 2nd current account with say, Tesco Bank, which offers 3% interest on up to £3000 with no pay in requirement and put the rest of my savings in that since I have less than £5000 total savings, is their something else I am missing? I am well below the tax threshhold only working part time so the ISA allowance is pretty irrelevent. I can just deposit my hard cash (which I get paid in) via by TSB bank and do a transfer so I dont need to fumble around with other banks.
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Tiger Rag
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Report 3 years ago
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I have used banks (for savings) which are just internet or phone only. I hated them, if I'm honest. I couldn't just pop into a branch if I was having issues. But that's me and some people are fine with it.

You really need to shop around. What do you want from your bank account? I, for example am with Nationwide and have a current account and ISA with them. I'm happy with the service. I also get free travel insurance with my bank account.
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